The Top 10 Ways to Lower the Cost of Car Insurance

The Top 10 Ways to Lower the Cost of Car Insurance

Category: Money, Financial (BH33)

Originally Submitted on 8/21/97.

You may not realize it, but the insurance rates you pay for a car or truck can vary dramatically depending upon a variety of factors, including (but not necessarily limited to): the insurance company, agent or broker you choose, the coverages you request and the kind of car/truck you drive. Listed below are a number of things you can do right now to lower your insurance costs! Best wishes!

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 below). 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. Request higher deductables!

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. Terminate collision and/or comprehensive coverages on older vehicles.

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. Purchase a 'low profile' vehicle.

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 geographic insurance costs when relocating/moving.

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. Ask about automatic seat belt and/or air bag discounts.

You may be able to take advantage of discounts on some coverages if you have automatic seat belts and/or air bags.

9. Ask about additional 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 below for a guide to these and other discounts.

10. Keep current on new developments in the insurance industry!

For additional information, contact The National Insurance Consumer Helpline (NICH) at 1-800-942-4242. You can reach your own state's Insurance Department at: AL: 205-269-3550; AK: 907-465-2515; AS: 684-633-4116; AZ: 602-255-5400; AR: 501-686-2900; CA: 800-927-4357; CO: 303-894-7499; CT: 203-297-3800; DE: 800-282-8611; DC: 202-727-8002; FL: 800-342-2762; GA: 404-656-2056; GU: 671-477-5144; HI: 800-468-4644; ID: 208-334-2250; IL: 217-782-4515; IN: 800-622-4461; IA: 515-281-5705; KS: 800-432-2484; KY: 502-564-3630; LA: 504-342-5900; ME: 207-582-8707; MD: 800-492-6116; MA: 617-727-3357; MI: 517-373-9273; MN: 800-652-9747; MS: 601-359-3569; MO: 314-751-2640; MT: 800-332-6148; NE: 402-471-2201; NV: 800-992-0900; NH: 800-852-3416; NJ: 609-292-5363; NM: 505-827-4500; NY: 212-602-0203; NC: 800-662-7777; ND: 800-247-0560; OH: 800-686-1526; OK: 405-521-2828; OR: 503-378-4271; PA: 717-787-5173; PR: 809-722-8686; RI: 401-277-2223; SC: 803-737-6117; SD: 605-773-3563; TN: 800-342-4029; TX: 512-463-6464; UT: 801-530-6400; VT: 802-828-3301; VI: 809-774-2991; VA: 800-552-7945; WA: 800-562-6900; WV: 800-642-9004; WI: 800-236-8517; WY: 307-777-7401

About the Submitter

This piece was originally submitted by Dr. James S. Vuocolo, Master Certified Coach, ICF; Certified Mentor Coach, Coachville & CoachU; Certified Executive Coach, WABC, Professional Coach & Ordained Minister, who can be reached at jim@lifecoachconsulting.com, or visited on the web. Dr. James S. Vuocolo wants you to know: I am a Business Coach and Life Strategist who works with professional men and women who want to create more of what benefits them in less time than they could do alone. My services are delivered by means of telephone calls, public speaking and workshops, with follow-up email and telephone support. I am also an author, teacher, mentor coach, and ordained minister. To read and hear actual testimonials, go to:
http://www.Soulbusiness.com/endorse.htm
. The original source is: An Insurance Consumer's report.

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