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How To Save On Car Insurance
By: Robert Rogers
Are You Still Paying Too Much for Car Insurance?
Everyone who owns a car needs auto insurance. This article will give you some
tips on lowering your auto insurance costs. You will find a checklist of items
to ask your insurance agent that may qualify for discounts. Keep in mind that
not all discounts can be applied with all insurance companies in all states.
1. Shop Around
Go to your favorite search engine and type in "free car insurance quotes
online". You'll see a long list of insurance companies that you may even be
familiar with. Visit at least five car insurance websites and look for a link to
free quotes. You will then be asked basic information about yourself, your
driving history, and your car's make, model, and year. It just takes a couple of
minutes, and shortly thereafter, they will email you a no obligation quote.
Write down their website address, their toll free number, and customer service
email address.
Each insurance company will ask you generally the same questions, and will give
you options about how much coverage you will want. Find your current policy, if
you have one, and take note of the coverage you currently have. Always provide
the same information and ask for the same coverage at each company so you will
be comparing apples to apples. Read the fine print and make sure nothing is
excluded from the quote like Rental car coverage, towing, medical, etc...
For the purposes of the quote, the insurance company will not ask you your
social security number, but keep in mind your actual cost maybe higher or lower
depending on your credit history. If you're not sure about some of the
terminology or coverage, take notes so that you can ask the insurance company
about them directly.
Once you have at least five quotes emailed to you, take the lowest two or three
quotes and see if they are less than what you are paying now. Most likely at
least one of them is much lower. At this point you will want to call them
directly to get the most accurate quote by providing additional personal
information. For additional discounts, here is a checklist of things you should
ask about.
[ ] $500 deductible
[ ] $1,000 deductible
[ ] Paying monthly, semi-annually, or annually
[ ] More than 1 car
[ ] No Accidents in 3 Years
[ ] No Moving Violations in 3 Years
[ ] Driver Training Courses
[ ] Defensive Driving Courses
[ ] Anti-Theft Devices
[ ] Low Annual Mileage
[ ] Air Bags
[ ] Anti-Lock Brakes
[ ] Daytime Running Lights
[ ] Student Drivers with Good Grades
[ ] Auto and Homeowners Coverage with the Same Company
[ ] College Students away from Home
[ ] Long-Time Customer
[ ] Other Discounts
2. Saving Insurance Premium on cars you own outright.
If you own a clear title to your car, meaning there is no bank loan on it, then
you may want to consider dropping the collision/comprehensive coverage. As a
rule of thumb, if the cars value is less than $3000, it may not make sense for
you to pay for this additional coverage. Over time, the cost of the additional
insurance premium will exceed the value of the car. It's pretty simple math.
Check the fair market value of your car either through Edmunds.com or even your
local newspaper. See what other people are trying to get for the same car. Keep
in mind your cars mileage, condition, and age. Has it been in an accident
before? Does it have unusually high mileage in excess of 15,000 miles per year?
Does it need new tires? You get the idea. Be realistic, because in the event
that this car is in an accident and is damaged beyond repair, it is unlikely you
will get the full value of the car.
3. Ask About Insurance Rates in Different Areas
Rates can vary widely even in the same state. Different locals have different
accident rates, population, and crime. These all factor in to the final cost. If
you are moving to a different area, ask about what the rates are for that town.
4. Ask About Getting Other Insurance Policies Together With Your Auto Insurance
Combining insurance policies with the same company can often give you additional
discounts. If you own a home, ask about combining your homeowners insurance with
your auto insurance. Also ask about other polices, such as life, health, and
business insurance. Most insurance companies cover a wide range of policies and
will give substantial discounts when you do business exclusively with them.
5. A Clean Credit History Can Reduce Car Premiums:
Having good credit can also lower your insurance costs. Many insurance companies
will use credit information to price auto insurance policies. Drivers with good
credit and a clean driving record may qualify as a "preferred" customer with
lower risk and will be rewarded with lower premiums.
6. Low Mileage Discounts
Some companies offer discounts to drivers who drive a lower than average number
of miles per year. If you car pool, take public transportation like the subway,
or work from home, you will most likely drive few miles per year than the
average driver.
7. Group Insurance
Some insurers offer discounts to drivers who work for certain companies or
belong to professional associations, and alumni groups. Ask your employer, group
or clubs that you belong to if they have any special arrangements with different
insurance companies.
Using all of these tips can save you hundreds of dollars per year, especially
when you have multiple cars and multiple drivers in the same household.
About the Author:
Robert Rogers is a writer in the Washington DC area and specializes in money
saving techniques. For free online quotes on all types of insurance, visit
http://valuesweb.com
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