1. Shop Around for
AutoInsurence
Prices vary from company to company,
so it pays to shop around. Get at least three price quotes. You can
call companies directly or access information on the Internet. Your
state insurance department may also provide comparisons of prices
charged by major insurers. (State insurance department phone numbers
and Web sites can be found here.)
California Lemon Laws
You buy insurance to protect you financially and provide peace of
mind. It's important to pick a company that is financially stable.
RV Insurance
Get quotes from different types of insurance companies. Some sell
through their own agents. These agencies have the same name as the
insurance company.
Some sell through independent agents
who offer policies from several insurance companies. Others do not use
agents. They sell directly to consumers over the phone or via the
Internet. |
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2. Before You Buy a Car,
Compare Auto Insurance Costs
Before you buy a new or used car, check
into auto 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. Many insurers offer discounts for features
that reduce the risk of injuries or theft. These include daytime
running lights and anti-theft devices. To help you decide what car to
buy, you can get information from the Insurance Institute for Highway
Safety (www.iihs.org).
3. Ask for Higher Deductibles
Deductibles are what you pay before your auto 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
to 30 percent. Going to a $1,000 deductible can save you 40 percent or
more. Before choosing a higher deductible, be sure you have enough
money set aside to pay it if you have a claim.
4. Reduce Coverage on Older Cars
Consider dropping collision and/or comprehensive coverages 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. Review your coverage at renewal time to make
sure your insurance needs haven't changed.
5. Buy your
Homeowners and Auto Coverage from the Same Insurer
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. Some insurers reduce the rates
for long-time customers. But it still makes sense to shop around! You
may save money buying from different insurance companies, compared
with a multi-policy discount.
6. Maintain a Good
Credit Record
Establishing a solid credit history can cut your insurance costs.
Insurers are increasingly using credit information to price auto
insurance policies. To protect your credit standing, pay your bills on
time, don't obtain more credit than you need and keep your credit
balances as low as possible. Check your credit record on a regular
basis and have any errors corrected promptly so that your record
remains accurate.
7. Take Advantage of Low Mileage Discounts
Some companies offer discounts to motorists who drive a lower than
average number of miles a year. Low mileage discounts can also apply
to drivers who car pool to work.
Car Financing
8. Ask about Group Insurance
Some companies offer reductions to drivers who get insurance through a
group plan from their employers, through professional, business and
alumni groups, or other associations. Ask your employer and inquire
with groups or clubs you are a member of to see if this is possible.
9. Seek Out Other Discounts
Companies offer discounts to policyholders who have not had any
accidents or moving violations for a number of years. You may also get
a discount if you take a defensive driving course. If there is a young
driver on the policy who is a good student, has taken a drivers
education course or is at a college out of the area without a car, you
may also qualify for a lower rate.
Before
you agree to an Auto insurance policy
from an insurance broker - check
the broker out first on the web.
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