You may not realize it, but the insurance rates you pay for your car can vary dramatically depending on the insurance company, agent or broker you choose, the auto coverage you request and the kind of car you drive. Thanks to some public information from our friends at Pueblo, other public domain sites, as well as my own articles, here are a number of things you can do right now to lower your car insurance costs.
1. Comparison Shop - Rates for the same car insurance can vary by hundreds of dollars, so it pays to shop around. Ask your friends, check the yellow pages or call your state insurance department. You can also check consumer guides, insurance agents or insurance companies.
But do not shop price alone. The insurer you select should offer both fair prices and excellent service. Quality personal service may cost a bit more, but provides added conveniences, so talk to a number of insurers to get a feeling for the quality of their service. Ask them what they would do to lower your costs. Check the financial ratings of the companies too. Then, when you have narrowed the field to three insurers, get price quotes.
2. Ask for a higher deductible - Car insurance deductibles represent the amount of money you pay before you make a claim. By requesting higher deductibles on collision and comprehensive (fire and theft) coverage, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision cost by 15% to 30%.
3. Drop collision and/or comprehension coverage on older cars - It may not be cost-effective to have collision or comprehensive auto coverage's on cars worth less than $1000 because any claim you make would not substantially exceed annual cost and deductible amounts. Auto dealers and banks can tell you the worth of cars.
4. Eliminate duplicate medical coverages - If you have adequate health insurance, you may be paying for duplicate medical coverage in your auto policy. In some states, eliminating this coverage could lower your personal injury protection (PIP) cost by up to 40%.
5. Buy a "low profile" car - Before you buy a new or used car, check into insurance costs. Cars that are expensive to repair, or that are favorite targets for thieves, have much higher insurance costs. Write to the insurance Institute for Highway Safety, 1005 North Glebe Road, Arlington, VA 22201 and ask for the Highway Loss Data Chart.
6. Consider area insurance cost if you are making a move - Costs tend to be lowest in rural communities and highest in center cities where there is more traffic congestion.
7. Take advantage of low mileage discounts - Some companies offer discounts to motorists who drive fewer than a predetermined number of miles a year.
8. Find out about automatic seat belts or air bag discounts - You may be able to take advantage of discounts on some coverage's if you have automatic seat belts and/or air bags.
9. Inquire about other discounts - Some insurers offer discounts for more than one car, no accidents in three years, drivers over 50 years of age, driver training courses, anti-theft devices, anti-lock brakes and good grades for students.
