Insurance Needs
Eleven Ways to Save on Your Car Insurance
Whether you are an experienced driver, a car owner, have used the same
insurance firm for a number of years or are shopping for a new vehicle, here are
11 tips to help lower your car insurance premiums.
1. Take time to shop around. Premiums vary widely. Practice the
"Rule of 3."
Get rates from at least three quality companies. Quality companies have "A"
ratings or better and provide prompt claims service. If you do not want to
switch agencies, ask the broker to match the premiums charged by a competitor.
2. Don't pay for duplicate medical coverage. If you have good health
insurance for yourself and family members, you don't need duplicate medical
insurance. Medical payments insurance that comes with your car insurance covers
accident expenses for family members. However, if your passengers routinely have
inadequate or no health insurance, make sure you have enough protection to cover
possible medical claims.
3. Drive safely. Once you get a speeding ticket or have an accident, your car
insurance premiums will increase, probably for three years. Keep in mind that
traffic fines and court costs add up.
4. Take a defensive driving course. Some states and insurance companies
reduce premiums after drivers take an approved driving course. If you have
points from speeding tickets on your driving record, they may be eliminated
after you take a defensive driving course.
5. Encourage your children to take a driver-training course. You can save
$200 or more in premiums if your children take a driver-training course. You can
save even more if your children can show proof of good grades, usually Bs or
better.
6. Buy a conservative car. Before you buy an exciting car, check with your
insurance agent about the premiums on different models. Sporty cars are more
likely to be stolen.
7. Increase your deductibles. Think of part of your savings as dedicated to
any deductibles you may pay on car, homeowner's or health insurance. If you don't need the funds, your savings can be used for other items. If you always pay
higher premiums for lower deductibles, you will never have those possible
savings.
8. Put all family vehicles on one policy. Savings of 10 to 15 percent are
possible when cars are insured on the same policy. If you also carry homeowner's
insurance with the same agent, you may benefit from even more savings.
9. Buy safety features. Air bags and anti-theft devices may mean lower
premiums. If you are buying a new model, ask your agent what the possible
savings will be before you choose safety features.
10. Share rides to work. Cutting the total miles you drive to work by riding
with others may reduce your premiums.
11. Eliminate comprehensive and collision on older model cars. It may not pay
to carry comprehensive and collision insurance on older, higher mileage models.
Ask what your maximum coverage will be and compare the possible payout with the
premium you must pay.
Back to Insurance Needs
|
