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 COVERAGES ON OLDER CARS.
It may not be cost-effective to have collision or comprehensive coverages 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 COVERAGES.
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.
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. See the following page for a guide to these and other discounts.
Lastly, after you have followed the insurance saving tips listed above, I suggest that you get a free online car insurance quote to see how much you can save by getting online car insurance quotes.