Ways to lower your auto insurance cost:
You may not realize that the cost of auto insurance can vary dramatically depending on the carrier you choose, the types of coverage you buy, and the kind of car you drive. Listed below are a number of things you can do right now to lower your insurance costs.
- Comparison Shop
Prices for the same coverage can vary by hundreds of dollars, so it pays to shop around.
- Ask for Higher Deductibles
A deductible is the amount you pay for a covered loss before the insurance company begins picking up the bill. By requesting higher deductibles on collision and comprehensive coverage, you can lower your premium costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15% to 30%.
- Drop Collision and/or Comprehensive Coverages on Older Cars
No insurance policy will pay more on a claim than your car is worth. It may not be cost effective to buy collision or comprehensive coverages on cars worth less than $1,000 because your claim payment wouldn't be much more than your annual premium and deductible. Auto dealers and banks can tell you the market value of your car.
- Buy a "Low Profile Car"
Before you buy a new or used car, check what it would cost to insure. Cars that are expensive to repair, or that are favorite targets for thieves, have much higher insurance costs.
- Take Advantage of Low Mileage Discounts
Some companies offer discounts to motorists who drive fewer than a predetermined number of miles a year.
- Find Out About Automatic Seat Belt or Air Bag Discounts
You may be able to take advantage of discounts on some coverages if your car has automatic seat belts and/or air bags.
- Ask About Anti-Lock Brakes
Anti-lock brakes improve steering control and stability when a car is brought to a stop, thus reducing accidents. Some states, including Florida, New Jersey and New York, require insurance companies to give discounts for cars equipped with these brakes. Other insurance companies provide this discount nationwide.
- Inquire About Other Discounts
Insurance companies offer discounts for things you might not be aware of. Discounts for having more than one car, no accidents in three years, drivers over 50 years of age, driver training courses, anti-theft devices, and good grades for students are all examples of ways your insurance costs can be reduced by inquiring.
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