Nine Ways To Lower Your Auto Insurance Costs

by S. Nicole Thomas

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 coverage is 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.

1. 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 (phone numbers are on back page). 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.

2. 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 your deductible from $200 to $500 could reduce your
collision cost by 15% to 30%. 3. DROP COLLISION AND/OR
COMPREHENSIVE COVERAGE'S ON OLDER CARS. It may not be
cost-effective to have collision or comprehensive 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 COVERAGE'S. 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 BELT 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.

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