Nine Ways To Lower Your Auto Insurance Costs
By S. Nicole Thomas

Nine Ways To Lower Your Auto Insurance Costs

You may not realize it, but the insurance rates you pay for
your car can vary dramatically depending on the insurance
company, agent or broker you choose, the coverage is you
request and the kind of car you drive. Listed below are a
number of things you can do right now to lower your
insurance costs.

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 on back page). 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. ASK FOR HIGHER DEDUCTIBLES. 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. DROP COLLISION AND/OR COMPREHENSIVE COVERAGE'S ON OLDER
CARS. It may not be cost-effective to have collision or
comprehensive coverage's 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 COVERAGE'S. 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. BUY A "LOW PROFILE" CAR. 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 AREA INSURANCE COST IF YOU ARE MAKING A MOVE.
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. FIND OUT ABOUT AUTOMATIC SEAT BELT OR AIR BAG DISCOUNTS.
You may be able to take advantage of discounts on some
coverage's if you have automatic seat belts and/or air bags.

9. INQUIRE ABOUT OTHER 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.

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