Lower Auto Insurance Rates
Instead of waiting for lower auto insurance rates, there are things you can do right now to reduce the price of your auto insurance, says the Western Insurance Information Service (WIIS).
You may not realize it, but your coverage can vary dramatically depending on the company you choose.
The price you pay will most likely depend on the coverages you request, the kind of car you drive, your driving experience behind the wheel, your driving habit (tickets and accidents), the number of miles you drive to work and where you live.
You should contact your insurance agent or broker to review your coverages and limits to make sure you understand what you have and that your agent-broker understands what you want.
Here's nine (9) ways to help lower your auto insurance costs.
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1 - Ask for higher deductibles. By requesting higher deductibles on comprehensive (fire and theft) and collision coverage, you agree to pay more money out of your pocket should a claim occur, but you can lower your costs substantially.
The number one question to ask yourself is: "When was the last time I filed a claim?". If you're like most of us, you haven't filed a claim in over 5 years. Increasing your deductible from $200 to $500 could reduce your collision cost by 10-20%. Don't be fooled into thinking the change isn't worth it.
With the average new vehicle cost well above $20,000, you can strike it rich just making the deductible change increase.
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2 - Drop comprehensive and collision coverage on your older vehicles. It may not be cost effective to have "physical damage" on your car if their value is less than $1500-$2000. Especially if you are driver that hasn't had a claim in the past five years.
Most physical damage claims that exceed 80% of the value of the car work against the owner. Since that is the normal benchmark for most insurance companies as to whether they will repair or "total-out" your car.
Remember, the lower the value of the car the less likely an insurance company may be willing to repair the vehicle. They will most likely cash-out the claim. The end result is you get current depreciated value (in price) but the real value (its' usefulness) is lost. Therefore, we suggest you take the difference and bank it for that rainy day.
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3 - Eliminate duplicate medical coverage. If you have adequate health insurance, you should consider dropping your medical coverage on your auto policy. In those state that have uninsured motorists, this is also a bodily injury coverage, drop it also. Just be sure your medical policy doesn't have any policy limitations on injuries as a result of an auto accident.
We have seen some medical policies that limit the amount of available coverage while injured on a two wheel motorcycle.
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4 - Buy a "low profile" car. Before you buy a car, you'd better do your homework! Cars that are expensive to repair, are a favorite target for thieves, etc., are going to cost you more insurance premiums.
We had a young couple buy one of those luxury 4wheel drives fully loaded all terrain vehicles. You should have seen their face when they got the insurance premium bill, $390 a month plus their $670 - 5 year lease, it was an eye opener.
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5 - Consider area insurance costs if making a move. Costs tend to be lowest in rural communities and highest in center cities. A simple phone call to your agent about your potential move and you may discover there's a price break on the other side of the street. Don't forget, zip code is still a primary rating factor in most states...
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6 - Take advantage of low mileage discounts. Most companies offer discounts to motorists who drive fewer than a predetermined number of miles a year. We found some price breaks occur at these annual miles: 5000, 7500 and 12000.
It's worth the extra time to check a months worth of driving and see how much you "really drive". You might be pleasantly surprised and be able to save money too.
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7 - Find out about safety discounts. Discounts may apply if your car is equipped with an anti-theft device, airbags, anti-lock brakes and/or automatic seat belts.
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8 - Inquire about other discounts. Some insurance companies offer discounts for more than one owned vehicle (multi-car discount), no accident in the past three years, drivers over the age of 50, completed drivers training courses, non-smokers and non-drinkers, good-student discounts.
Valid insurance in excess of 9 years, certain professional occupations, college degree's, club memberships and homeowner ownership.
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9 - Comparison shop!!!! We've found nearly 80% of all drivers are paying too much for insurance. The reason: they have not taken the time to shop their insurance price and coverage. When's the last time you called your insurance agent-broker and told them you are paying too much for insurance and what can they do to help you lower your rate?
If you're like most of us, you haven't called them in well over a year. Don't be afraid to check out other insurance companies, their reputation, financial rating and then see if they can offer you a better package.
We recommend you take the time to review your policy coverages with your agent or broker. It's important to shop your insurance premium and coverages to see if you have the best available.
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