Insurance Information Institute
Nine Ways to Lower Your Auto 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 coverages you request and the kind of car you drive. Listed
below are a number of things you can do right now to lower your insurance
costs.
1. 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 (phone numbers are on back
page). 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 what they would do to lower your costs. Check the financial
ratings of the companies, too. Then, when you've narrowed the field to three
insurers, get price quotes.
2. 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
could reduce your collision and comprehensive cost by 15% to 30%.
3. Drop Collision and/or Comprehensive Coverages on Older Cars. It may
not be cost effective to have collision or comprehensive coverages on cars
worth less than $1,000 because any claim you make would not substantially
exceed annual cost and deductible amounts. Auto dealers and banks can tell
you the worth of cars.
4. Buy a "Low Profile Car. Before you buy a new or used car, check into
insurance costs. Cars that are expensive to repair, or that are favorite
targets for thieves, have much higher insurance costs. Write to the Insurance
Institute for Highway Safety, 1005 North Glebe Road, Arlington, VA 22201
and ask for the Highway Loss Data Chart.
5. Take Advantage of Low Mileage Discounts. Some companies offer discounts
to motorists who drive fewer than a predetermined number of miles a year.
6. Consider Insurance Cost When Making a Move. Costs tend to be lowest
in rural communities and highest in center 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 coverages if you have automatic
seat belts and/or air bags.
8. 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 the brakes and some insurers have a nationwide
discount in place.
9. Inquire About Other Discounts. Some insurers offer discounts for more
than one car, no accidents in three years, drivers over 50 years of age,
driver training courses, anti-theft devices, and good grades for students.
See the following for a guide to these and other discounts.
Inquire about discounts for:
---------------------------------------------------------------------
|Company A| Company
B| Company C
---------------------------------------------------------------------
$500 deductible
-------------------------|-------------|------------|----------------
$1,000 deductible
-------------------------|-------------|------------|----------------
More than 1 car
-------------------------|-------------|------------|----------------
No Accidents in 3 Years
-------------------------|-------------|------------|----------------
No Moving Violations
in 3 Years
-------------------------|-------------|------------|----------------
Drivers over 50
Years of Age
-------------------------|-------------|------------|----------------
Driver Training
Course
-------------------------|-------------|------------|----------------
Anti-theft Device
-------------------------|-------------|------------|----------------
Low Annual Mileage
-------------------------|-------------|------------|----------------
Automatic Seat Belt
-------------------------|-------------|------------|----------------
Air Bag
-------------------------|-------------|------------|----------------
Anti-Lock Brakes
-------------------------|-------------|------------|----------------
Good Grade for Students
-------------------------|-------------|------------|----------------
Auto and Homeowners
Coverage with the
Same Company
-------------------------|-------------|------------|----------------
College Students away
from Home without
a Car
-------------------------|-------------|------------|----------------
Other Discounts
-------------------------|-------------|------------|----------------
-------------------------|-------------|------------|----------------
-------------------------|-------------|------------|----------------
-------------------------|-------------|------------|----------------
For More Information,
Call the National Insurance Consumer Helpline
(NICH) at 1-800-942-4242
You Can Reach Your State Insurance Department at:
AL: 334-269-3550 KY: 502-564-6027 OH: 614-644-2658
AK: 907-465-2515 LA: 504-342-5423 OK: 405-521-2686
AZ: 602-912-8400 MA: 617-521-7794 OR: 503-378-4271
AR: 501-686-2900 MD: 410-333-2521 PA: 717-783-0442
CA: 916-445-5544 ME: 207-624-8475 PR: 809-722-8686
CO: 303-894-7499 MI: 517-373-9273 RI: 401-277-2223
CT: 203-297-3802 MN: 612-296-6848 SC: 803-737-6160
DE: 302-739-4251 MS: 601-359-3569 SD: 605-773-3563
DC: 202-727-8000 MO: 314-751-4126 TN: 615-741-2241
FL: 904-922-3101 MT: 406-444-2040 TX: 512-463-6464
GA: 404-656-2056 NE: 402-471-2201 UT: 801-538-3800
GU: 671-477-5106 NV: 702-687-4270 VT: 802-828-3301
HI: 808-586-2790 NH: 603-271-2261 VI: 809-774-2991
IA: 515-281-5705 NJ: 609-292-5363 VA: 804-371-9694
ID: 208-334-4250 NM: 505-827-4601 WA: 360-753-7301
IL: 217-782-4515 NY: 212-602-0429 WV: 304-558-3354
IN: 317-232-2385 NC: 919-733-7349 WI: 608-266-0102
KS: 913-296-7801 ND: 701-328-2440 WY: 307-777-7401
For More Information,
Call the National Insurance Consumer Helpline
(NICH) at 1-800-942-4242
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