Tips on Lowering Car Insurance

One of the best ways to keep your auto insurance costs down is to have a good driving record. But that’s far from the only factor.

1. Shop Around - Prices vary from company to company, so it pays to shop around. Get quotes from different types of insurance companies: some sell through their own agents; some sell through independent agents who offer policies from several insurance companies; and others do not use agents at all, but sell directly to consumers over the phone or via the Internet. You can call companies directly or access information online. Your state insurance department may also provide comparison price info on major insurers. Check the financial health of insurance companies with rating companies such as A.M. Best and Standard & Poor’s and consult consumer magazines.

2. Before You Buy a Car, Compare Insurance Costs - Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. For instance, daytime running lights and anti-theft devices can result in insurance discounts. Check out the Insurance Institute for Highway Safety for more information on the cars that are cheapest to insure.

3. Ask for Higher Deductibles - Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15-30 percent; going to a $1,000 deductible could save you 40% or more.

4. Reduce Coverage on Older Cars - Consider dropping collision and/or comprehensive coverage on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Or you can look it up online at Kelley’s Blue Book.

5. Buy Homeowners and Auto Coverage Together - Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Multi-policy discounts are worth looking into.