Want to save money on your car insurance? Here are suggestions from the Insurance Information Institute (III).
1. Comparison shop. Use consumer guides online from your state’s insurance department. These guides tell you what coverages you need and show you sample auto insurance rates, usually from the biggest companies. Get auto insurance quotes from at least three insurers.
2. Ask for higher deductibles. When you file a claim, a deductible is the amount of money you pay before your auto insurance company pays for the rest of the damage. Higher deductibles mean lower premiums. For example, increasing your deductible from $200 to $500 on collision and comprehensive coverage could reduce that portion of your premium by 15 to 30 percent, according to III.
3. Drop collision and/or comprehensive coverages on old cars. If your car is totaled in an accident, you receive the actual cash value of the car. Although auto insurance companies use their own criteria to determine fair market value for vehicles, you can get a ballpark estimate from Kelley Blue Book. For older cars, it may not make financial sense to pay premiums over many years to maintain collision and comprehensive coverage.
4. Buy a “low-profile” car. Cars that are expensive to repair or that have a high theft rate have higher car insurance rates.
5. Take advantage of low-mileage discounts. Some auto insurance companies offer discounts to drivers who put fewer than a predetermined number of miles on their vehicles each year. And with the high price of gasoline, driving less makes financial sense.
6. Consider auto insurance rates when making a move. Car insurance rates tend to be lowest in rural communities and highest in cities, where more traffic congestion occurs and the likelihood of theft increases.
7. Ask about discounts for air bags and other safety features. Your insurance agent can tell you know about these discounts when you purchase your coverage. Most policies give discounts for air bags.
8. Ask about antilock brake discounts. Some states require insurers to give discounts for cars equipped with antilock brakes. Some auto insurance companies give the discount no matter where you live.
9. Ask about other discounts. Some insurers offer discounted auto insurance quotes for insuring more than one car, having no accidents in three years, being a driver over age 50, taking driver-training courses, having antitheft devices and being a long-time customer. Plus, remember good-student discounts when you are insuring a student who drives.
10. Buy your home and auto policies from the same insurer. This will entitle you to a multiline discount.
11. Find out about group discounts. Sometimes group auto insurance policies are available through large employers, professional groups and other organizations.
12. Maintain good credit. Your credit rating may affect your car insurance rates. Use of credit scores in setting auto insurance prices varies by state and insurance company, but statistics show that drivers with good credit records tend to have fewer accidents.