TIPS FOR AUTO OWNERS
MONEY SAVING TIPS FOR YOUR AUTO INSURANCE
1. BEFORE YOU BUY A CAR, COMPARE INSURANCE COSTS: Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft, such as daytime running lights and anti-theft devices.
2. ASK FOR HIGHER DEDUCTIBLES: Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay if you have a claim.
3. REDUCE COVERAGE ON OLDER CARS: Consider dropping collision and/or comprehensive coverage on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars, or you can look it up online at Kelley’s Blue Book (http://www.kbb.com). Review your coverage at renewal time to make sure your insurance needs haven’t changed.
4. BUY YOUR HOMEOWNERS AND AUTO COVERAGE FROM THE SAME INSURER: Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers, but it still makes sense to shop around! You may save money buying from different insurance companies, compared with a multi-policy discount.
5. MAINTAIN A GOOD CREDIT RECORD: Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price auto insurance policies. To protect your credit standing, pay your bills on time, don't obtain more credit than you need, and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly, so that your record remains accurate.
6. TAKE ADVANTAGE OF LOW MILEAGE DISCOUNTS: Some companies offer discounts to motorists who drive a lower than average number of miles a year.
7. SEEK OUT OTHER DISCOUNTS: Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course, or is at a college out of the area without a car, you may also qualify for a lower rate
1. BEFORE YOU BUY A CAR, COMPARE INSURANCE COSTS: Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft, such as daytime running lights and anti-theft devices.
2. ASK FOR HIGHER DEDUCTIBLES: Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay if you have a claim.
3. REDUCE COVERAGE ON OLDER CARS: Consider dropping collision and/or comprehensive coverage on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars, or you can look it up online at Kelley’s Blue Book (http://www.kbb.com). Review your coverage at renewal time to make sure your insurance needs haven’t changed.
4. BUY YOUR HOMEOWNERS AND AUTO COVERAGE FROM THE SAME INSURER: Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers, but it still makes sense to shop around! You may save money buying from different insurance companies, compared with a multi-policy discount.
5. MAINTAIN A GOOD CREDIT RECORD: Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price auto insurance policies. To protect your credit standing, pay your bills on time, don't obtain more credit than you need, and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly, so that your record remains accurate.
6. TAKE ADVANTAGE OF LOW MILEAGE DISCOUNTS: Some companies offer discounts to motorists who drive a lower than average number of miles a year.
7. SEEK OUT OTHER DISCOUNTS: Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course, or is at a college out of the area without a car, you may also qualify for a lower rate