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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 coverages 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 COVERAGES ON OLDER
- CARS.
-
- It may not be cost-effective to
have collision or
- comprehensive coverages 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
COVERAGES.
-
- 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
- coverages 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. See the
following page for a guide to
- these and other discounts.
-
- INQUIRE ABOUT DISCOUNTS FOR:
-
- COMPANY A COMPANY B COMPANY C
- $500 deductible _______ _______
_______
- $1,000 deductible _______
_______ _______
- More than 1 car _______ _______
_______
- No Accidents
- in 3 Years _______ _______
_______
- No Moving Violations
- in 3 Years _______ _______
_______
- Drivers Over 50 Years
- of Age _______ _______ _______
- Driver Training Course _______
_______ _______
- Anti-Theft Device _______
_______ _______
- Low Annual Mileage _______
_______ _______
- Automatic Seat Belt _______
_______ _______
- Air Bag _______ _______ _______
- Anti-Lock Brakes _______ _______
_______
- Good Grades for
- Students _______ _______ _______
- Auto and Homeowners
- Coverage with the
- Same Company _______ _______
_______
- College Students
- Away From Home
- Without a Car _______ _______
_______
-
- OTHER DISCOUNTS:
-
- _______________ _______ _______
_______
- _______________ _______ _______
_______
- _______________ _______ _______
_______
- _______________ _______ _______
_______
-
- YOU CAN REACH YOUR STATE
INSURANCE DEPARTMENT AT:
-
- AL: 205-269-3550
- AK: 907-465-2515
- AS: 684-633-4116
- AZ: 602-255-5400
- AR: 501-686-2900
- CA: 800-927-4357
- CO: 303-894-7499
- CT: 203-297-3800
- DE: 800-282-8611
- DC: 202-727-8002
- FL: 800-342-2762
- GA: 404-656-2056
- GU: 671-477-5144
- HI: 800-468-4644
- ID: 208-334-2250
- IL: 217-782-4515
- IN: 800-622-4461
- IA: 515-281-5705
- KS: 800-432-2484
- KY: 502-564-3630
- LA: 504-342-5900
- ME: 207-582-8707
- MD: 800-492-6116
- MA: 617-727-3357
- MI: 517-373-9273
- MN: 800-652-9747
- MS: 601-359-3569
- MO: 314-751-2640
- MT: 800-332-6148
- NE: 402-471-2201
- NV: 800-992-0900
- NH: 800-852-3416
- NJ: 609-292-5363
- NM: 505-827-4500
- NY: 212-602-0203
- NC: 800-662-7777
- ND: 800-247-0560
- OH: 800-686-1526
- OK: 405-521-2828
- OR: 503-378-4271
- PA: 717-787-5173
- PR: 809-722-8686
- RI: 401-277-2223
- SC: 803-737-6117
- SD: 605-773-3563
- TN: 800-342-4029
- TX: 512-463-6464
- UT: 801-530-6400
- VT: 802-828-3301
- VI: 809-774-2991
- VA: 800-552-7945
- WA: 800-562-6900
- WV: 800-642-9004
- WI: 800-236-8517
- WY: 307-777-7401
-
- FOR MORE INFORMATION, CALL THE
NATIONAL INSURANCE
- CONSUMER HELPLINE (NICH) AT
1-800-942-4242
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