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How
You Can Save On Your Car Insurance
Take
a few minutes to look over your auto insurance policy to determine what
it covers. By doing this, you can sometimes find that better values and
more sensible protection are available to you, and in many cases, at a less
expensive rate.
Look into membership services in large organizations such as credit unions,
AAA, AARP or NEA. Discounts are sometimes available for members.
Tip
#1:
Shop Around
Depending on the company, prices for insurance can vary by hundreds of dollars.
You can ask your friends, surf the Internet, or call your state insurance
department to obtain ideas about other companies and agents to contact.
Try to get 3 different quotes so you can compare. When speaking with an
insurer, they should be able to offer you both excellent service as well
as fair price quotes. You can ask them what can be done to lower your costs.
Tip
#2:
Ask For Higher Deductibles
A Deductible represents the amount of money you must pay prior to receiving
payment for a claim. When you request a higher deductible on “Collision
& Comprehensive” coverage, you can substantially lower your costs.
(Ex: increasing your deductible from $200 to $500 can reduce your collision
& comprehensive cost by 15% to 30%). However, this means that your out-of-pocket
expense will be higher if you should have to make a claim.
Tip
#3:
Drop Collision and/or Comprehensive Coverage on Older Cars
Having collision or comprehensive coverage on cars that are worth less than
$1,000 may not be cost effective. Any claim that you make would not substantially
exceed the annual cost & deductible amounts. If you do not know how
much your car is worth, you can contact an auto dealer or bank and they
can tell you the current value.
Tip
#4:
Buy a “Low Profile” Car
Check into insurance costs prior to purchasing a new or used car. Any car
that is expensive to repair or is a car-jacking/theft target will have a
much higher insurance cost.
Tip
#5:
Low Mileage Discounts
Some companies may offer a discount to motorists who drive fewer than a
specific number of miles per year.
Tip
#6:
Consider Insurance Costs When Moving
Insurance costs in rural communities tend to be the lowest. Costs in cities
(where there is more traffic) tend to be the highest. Consider where you
are moving if you want to take insurance cost into consideration.
Tip
#7:
Automatic Seat Belt or Airbag Discounts
Some companies may offer a discount if your car comes equipped with automatic
seat belts and/or airbags. Ask the agent about this to see if they offer
this discount.
Tip
# 8:
Anti-Lock Brakes
Accidents may be reduced if your car has anti-lock brakes. Anti-lock brakes
improve the car’s steering control & stability when brought to
a stop. Some states, including Florida, New Jersey & New York, require
insurers to give discounts for cars equipped with these brakes. Some insurers
have a nationwide discount in place. Check to see if your state offers this
type of discount.
Tip
#9:
Inquire About Other Discounts
Check with the companies that you call, to see if they offer any other types
of discounts. Examples of these can be: No accidents in 3 years, drivers
over 50 years of age, anti-theft devices, driver training courses, students
with good grades, and multiple car discounts.
Definitions
of Terms
COLLISION INSURANCE:
Insurance coverage that pays for damage to the policyholder’s car
caused by collision (maximum book value).
COMPREHENSIVE INSURANCE:
Coverage providing protection in the event of physical damage (other than
collision) or theft of the insured car.
LIABILITY INSURANCE:
Insurance for money the policyholder is legally obligated to pay because
of bodily injury or property damage caused to another person and covered
in the policy. |
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