Auto Insurance Checklist
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Before you buy a car, compare insurance costs For more information on car safety, check the Insurance Institute for Highway Safety. Cars that are favorite targets for thieves cost more to insure. For more information on car theft, check the National Insurance Crime Bureau (NICB). |
Ask for a higher deductable Your deductible is the amount of money you pay out-of-pocket before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage premium by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. However, keep in mind that you are responsible for the amount of deductible you choose should something happen to your car. (This is your out of pocket expense ) |
Reduce coverage in older cars |
homeowners and auto coverage Many insurers will give you a discount if you buy two or more types of insurance from them. Also, you may get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce premiums for long-time customers. you may still save more money buying from a different insurance company even with the multi-policy discount. Some auto insurers will give you a discount if you own a home. |
Low-mileage discounts Some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who carpool to work. |
Group insurance You may be eligible to get insurance through a group plan from your employer, or through professional, business and alumni groups or other associations. Group plans often provide substantial discounts. Ask your employer, or any groups or clubs of which you are a member, about this option. |
Maintain good credit Your credit rating may affect what you pay for insurance, so monitor it carefully. You can get this information directly from the three major credit-rating agencies (Equifax, Experian, Trans Union). There are also various Web sites that allow you to check your credit rating and provide tips on how to improve your score. Some insurers only take a snap shot of your credit score which will not have any effect on your credit report and this is called soft pull. Hard pull will effect your credit score |
Safe driver discounts Most insurance companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also qualify for a cut if you have recently taken a defensive driving course, if you are over 50 and retired, or if there is a young driver on the policy who is a good student, has taken a drivers education course or is away at a college, generally at least 100 miles away. When you comparison shop, be sure to inquire with us about discounts for the following (availability will vary according to each company): § § No moving violations in 3 years § Drivers over 50 to 55 years of age § Driver training course § Defensive driving course § Student drivers with good grades § College students away from home § $500 deductible § $1,000 deductible § Air bags § Anti-lock brakes § Daytime running lights § Anti-theft device § Low annual mileage § Auto and homeowners coverage with the same company § More than one car insured with the same company § Long-time customer But don’t forget that the key to savings is not the discounts but the final price. A company that offers few discounts may still have a lower overall price. Call us for your insurance needs. |