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Top 10 Ways to Save on Auto Insurance
Auto insurance protects the insured against losses involving the use of automobiles. Various coverages may be bought depending on the desires of the insured. Types of coverages include the liability coverages of bodily injury, property damage, and medical payments, and the physical damage coverages of collision and comprehensive.
- Comparison shop
Use consumer information provided by your state's insurance department. Your state's insurance department will be able to tell you what coverages you need and show you sample rates.
- Get a higher deductible
A deductible is the amount of money you pay to your insurance company when you file a claim. The insurance company will pay bill minus the amount of the deductible. For instance, if you bill is 1000, and your deductible is $200, your insurance company will pay $800. The higher your deductible, the lower your premium.
- Drop collision and/or comprehensive coverages on older cars.
If your car is worth less than $2,000, you'll probably pay more for the coverage than you would ever collect on a claim.
- Buy a "low-profile" car.
Cars that are expensive to repair or that have a high theft rate generally have higher insurance costs.
- Do not buy a Convertible or a 2-seater.
Convertibles and 2 seaters usually have higher premiums that other types of cars
- Take advantage of low-mileage discounts.
Some insurance companies offer discounts to drivers who put fewer than a predetermined number of miles on their vehicles each year.
- Pay annually instead of in installments. Paying in installments usually increases your overall bill.
- Check your credit history and correct inaccuracies.
Many insurance companies use insurance credit scores in figuring rates.
- Ask about discounts for antilock brakes, air bags, security devices, and multi-car rates.
Some states require insurers to give discounts for cars equipped with antilock brakes. Some insurance companies give the discount no matter where you live. Most policies also give discounts for air bags.
- Check on group insurance and corporate discounts.
Members of the American Automobile Association usually receive a discount on their car insurance. You may be eligible to get a discount through trade or professional associations that you belong to, or through your employer's corporate benefits program.
- Ask about other discounts.
Some companies offer discounts for insuring your home with them (known as a multiline discount), having no accidents in three years, being a driver over age 50, taking driver training courses,
having college kids who are far away, and being a good-student.
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