Auto Insurance Tips
1) Raise your deductible amount.
Your "deductible" is the amount you pay when you make a claim before your insurance company pays. For instance, if your car suffers $300 dollars in damage and you have a $500 dollar deductible, you will be responsible for the full $300. The disadvantage of raising your deductible is that when you do make a claim, youíll pay more. The advantage is that your insurance costs yearly go down. Go a number of years saving money without making a claim and your ahead. This tip can be applied to collision and comprehensive sections of your insurance policy.
2) Drop your collision and/or comprehensive insurance on older autos.
Sometimes itís just not worth paying for these kinds of insurance- if your car is not worth that much to begin with. Thatís because the amount you pay for the deductible plus the amount you pay for the insurance may not be more than the value of the car itself. An auto dealer or certain automotive magazines can help you determine the value of your auto.
3)Buy a "lower profile" vehicle.
Part of what determines the coat of insurance is the kind of vehicle you drive. Some are favorites for thieves. Some are more expensive to repair. Generally these vehicles will cost more to insure. It pays to do your research before you buy.
4) Take full advantage of low mileage or distance discount ratingóSome insurance companies give discounts to people who drive less than a pre-determined number of miles each year or drive certain distances to and from their place to work.
5) When you move, consider the cost of insurance of where you are moving
Yes, the cost of insurance varies from place to place. For instance, a place like southern california will have a higher rate than somewhere in the middle of nowhere. Some areas can be considerably higher. Keep your auto agent informed and this may save you money. The right territory!
6) Make sure the rating and use of your vehicle is correct.
Many manufacturers offer similar model names for vehicles and insurance costs can vary. Even 2 or 4 doors or the wrong model can effect the cost .
7) Have your broker check other insurance company discounts
Insurance companies try to reward good drivers with low risk. There is a less probability that those drivers will need to file a claim. Lots of companies offer discounts to drivers who also have other kinds of insurance with them such as their homes and life. This is called a multi-policy discount. State Farm is an example of an insurance company who does this. Other discounts available might be - multiple vehicles, anti-theft devices, drivers education, abstainers from alcohol, age, and distance to university/colleges for students. To name a few. Check with your insurance agent to all that are available, because it will save you money!