Although auto insurance rates are based on a number of factors such
as your age, marital status and driving record, you can still lower
your insurance costs by doing some careful shopping.
According to the Western Insurance Information Service (WIIS),
consumers can save hundreds of dollars a year if they follow these suggestions:
TAKE ADVANTAGE OF AVAILABLE DISCOUNTS
Some insurers will offer discounts that can reduce your insurance
premiums from 5% to 40%. Always ask your insurer about the types of
discounts their company offers because you may be eligible for a
discount that would not otherwise automatically be applied to your
premium. Keep in mind that these discounts vary from company to
company. Here is a list of some common discounts:
CHOOSE HIGHER DEDUCTIBLES
By raising the deductible on collision and comprehensive coverage,
you can substantially lower your insurance premiums.
CONSIDER THE TYPE OF CAR YOU MIGHT BUY
Before you buy a new or used car, you should check how much your
insurance premiums may cost. Cars that have high theft rates, high
frequency of claims or are expensive to repair will have high
insurance rates. However, buying "low profile" cars such as
mid-sized station wagons or four-door sedans and cars with safety
features can save you a considerable amount of money.
According to the Highway Data Loss Institute, some examples of cars
with low theft claims are the Mercury Sable, Chevy Cavalier, and
Mazda MPV Van. Cars with high theft rates include the Mercedes,
Chevrolet and Ford convertibles, and the Volkswagen Cabriolet or Golf/GTI.
SELECT ONLY THE TYPES OF COVERAGE YOU NEED
There are six basic types of coverage: 1) Bodily Injury Liability
Insurance, 2) Medical Payments Insurance, 3) Uninsured/Underinsured
Motorist Protection, 4) Property Damage Liability, 5)Comprehensive
Physical Damage Insurance and 6) Collision Insurance.
You should review each type of coverage carefully as each one applies
to different types of losses. You can easily waste money by
duplicating coverage's. For example, if you already have good medical
and disability insurance, you may not want to buy medical payments
insurance. Also, if you have collision and comprehensive insurance,
you don't need to buy the type of uninsured motorist protection that
pays for damages to your vehicle.
You can also save money by dropping collision/and or comprehensive
coverage's on older cars worth less than $1,000. If you make a claim,
you would not substantially exceed annual cost and deductible amounts.
COMPARE RATES FROM OTHER INSURANCE COMPANIES
Since auto insurance rates can vary by hundreds of dollars, you
should do some careful shopping. Keep in mind that when you compare
prices, premiums are based upon the same types of coverage's and
information being quoted.
While price is an important factor, you should also consider the
quality of service the insurer will provide. Check the insurance
company's claims paying history and financial strength to ensure that
the company is reliable. You can call the Department of Insurance in
your state to check if a company is licensed to sell insurance there.
Source: Western Insurance Information Services