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 coverages you request and the kind of car you drive. Listed
below are a number of things you can do right now to lower your insurance
costs.
Comparison Shop Prices for the same coverage 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 (In Washington,
1-800-562-6900). You can also check consumer guides, insurance
agents or companies. This will give you an idea of price ranges
and tell you which companies or agents have the lowest prices. But
don't 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've narrowed the field to three insurers, get
price quotes.
Ask for Higher Deductibles 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 you deductible from $200
to $500 could reduce your collision and comprehensive cost by 15 to
30 percent.
Drop Collision and/or Comprehensive
Coverages on Older Cars It may not be cost effective to have collision or comprehensive
coverages on cars worth less than $1,000 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.
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.
Take Advantage of Low Mileage
Discounts Some companies offer discounts to motorists who drive
fewer than a predetermined number of miles a year.
Consider Insurance Cost When
Making a Move Costs tend to be lowest in rural communities and highest
in center cities where there is more traffic congestion.
Find out about Automatic
Seat Belt or Air Bag Discounts You may be able to take advantage of discounts on some
coverages if you have automatic seat belts and/or air bags.
Ask about Anti-lock Brakes Anti-lock brakes improve steering control and stability
when a car is brought to a stop, thus reducing accidents. Some
states, including Florida, New Jersey and New York, require insurers
to give discounts for cars equipped with this kind of brakes.
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, and good grades for students.
