How To Reduce Your Car Insurance Rates
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Each car insurance company has unique financial goals and costs. As a result, it isn’t uncommon to find rate differences between companies for the exact same insurance coverage. The cheapest insurance may not provide you with the degree of coverage you need. It is a good idea to discuss your coverage with your agent or auto insurance company.
Select the right vehicle
The type of car you own has a direct influence on your auto insurance costs. Before you buy a vehicle, check with your agent or broker to find out how much it will cost to insure.
Select higher deductibles
The amount of the deductible you select will affect your car insurance rate. For example, you may save money by increasing your collision and comprehensive deductibles from $100 to $500. To help keep your premiums down, you may want to think about paying for smaller claims yourself and using your car insurance to only pay for larger claims.
Special discounts
Ask each agent or insurance company if they offer special discounts. They often offer discounts to young drivers who are good students or who have completed a driver’s education course. Many companies will give you a discount on your premiums if you also insure your house through the same company.
Eliminate duplication
Your insurance coverage may overlap in some areas, such as medical, collision, and uninsured motorist property damage. Ask your agent or broker to explain your coverage and advise you if you are duplicating coverage.
Buying collision / comprehensive coverage
If you don’t think you could afford to fix your vehicle yourself if it was involved in a car accident, you may want to carry collision and comprehensive coverage. These coverages protect owners of expensive and late-model cars against the cost of repairs. Though coverage may increase your rates, you may want to think about it if the difference in what you pay would exceed your ability to pay the repair bills. Your lender may require these coverages until you’ve paid off your vehicle.
Dec 19, 2008
How To Reduce Your Car Insurance Rates
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