Nine Ways To Lower Your Insurance Costs

You may not realize it, but the insurance rates you pay for your car can vary dramatically depending on the insurance company, agent or broker you choose, the types of coverage you request and the kind of car you drive. Listed below are a number of steps you can take rto lower your insurance costs.

• Comparison Shop
  Prices for the same coverage can vary by hundreds of dollars, so it pays to shop around. Ask your friends, check the yellow pages or call your state insurance department. You can also check consumer guides, insurance agents or companies. This will give you an idea of price ranges and tell you which companies or agents have the lowest prices. But don't shop price alone. The insurer you select should offer both fair prices and excellent service. Quality personal service may cost a bit more, but provides added conveniences, so talk to a number of insurers to get a feeling for the quality of their service. Ask them how they can lower your costs. Check the financial ratings of the companies, too. When you've narrowed the field to three insurers, get price quotes.

• Ask for Higher Deductibles
  Deductibles represent the amount of money you pay before you make a claim. By requesting higher deductibles on collision and comprehensive (fire and theft) coverage, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 can reduce your collision and comprehensive cost by 15 to 30 percent.

• Drop Collision and/or Comprehensive Coverage on Older Cars
  It may not be cost effective to have Collision or Comprehensive Coverage on vehicles worth less than $1,000 because any claim you make would not substantially exceed the annual cost and deductible amounts. Auto dealers and banks can tell you the value of vehicles.

• Buy a "Low Profile" vehicle
  Before you buy a new or used vehicle, check into insurance costs. Vehicles that are expensive to repair, or which are favorite targets for thieves, have much higher insurance costs. Visit the Insurance Institute for Highway Safety and take a look at its Highway Loss Data Chart.

• Take Advantage of Low Mileage Discounts
  Some companies offer discounts to motorists who drive fewer than a predetermined number of miles a year.

• Consider Insurance Costs When Making a Move
  Costs tend to be lowest in rural communities and highest in cities where there is more traffic congestion.

• Find out about Automatic Seat Belt or Air Bag Discounts
  You may be able to take advantage of discounts on some types of coverage if you have automatic seat belts and/or air bags.

• Ask about Anti-lock Brakes
  Anti-lock brakes improve steering control and stability when a car is brought to a stop, thus reducing accidents. Some states, including Florida, New Jersey and New York, require insurers to give discounts for cars equipped with these kind of brakes.

• Inquire about Other Discounts
  Some insurers offer discounts for more than one vehicle, no accidents in three years, drivers over 50 years of age, driver training courses, anti-theft devices and good grades for students.

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