Ten Golden Rules to Save on Auto Insurance
Auto Insurance is a bouquet of different covers like liability
insurance; collision insurance; comprehensive insurance; medical
insurance; uninsured motorist insurance; rental reimbursement;
towing and labor cost coverage; as well as gap coverage.
What is essential and what will protect a car owner from
problems varies from state to state. It is advisable to insure
for a little more than absolutely necessary. Insurance premiums
can be prohibitively high so, as an informed consumer you must
do your research thoroughly.
Golden rules:
* Access consumer information available on the state's insurance
department web site. Read all the guidelines and determine what
coverage is required by you. Be sure to read the sample rates
listed. This research will give you a fair idea of what the
premiums are likely to be.
* Ask for quotes from at least three big players in the auto
insurance business. Companies like Geico http://www.geico.com/ ;
Amica http://www.amica.com/ ; State Farm
http://www.statefarm.com/ ; and Allstate
http://www.allstate.com/ .
* Find out what is the highest deductible permissible and if you
can afford it. Generally increasing a deductible from US$ 200 to
US$ 500 can reduce premiums payable by as much as 30 %.
* Evaluate the worth of your car. If it is old and worth less
than US$ 2000 then you can consider opting out of collision and
comprehensive coverage for the car. The premiums paid will be
much higher than what you will collect. Ask the insurance
companies to evaluate the market value of the car. Find out the
worth of you car by using http://www.kbb.com/ the site of Kelley
Blue Book.
* Use common sense when buying a car. Be sure to choose one that
does not require higher insurance premiums. It is important to
not just consider buying costs but cost of insurance too.
* Find out if the insurance company has a scheme that offers
discounts on the basis of lower usage or mileage. Some companies
offer discounts if you utilize public transport to go to work.
They require you to submit proof that you do.
* Ensure that your insurance credit history is accurate. Many
insurers use credit history as a basis to calculate premiums.
* Study the laws of the state where you live. Find out whether
any further adjustments in premiums can be made because you car
if fitted with: airlock brakes, air bags, and other safety
features. Find out from the companies as well as your agent.
* Find out whether membership to organizations like American
Automobile Association makes you eligible for any discounts. Ask
about trade, professional associations, and corporate benefit's
program. Some companies offer: student's discounts for students
with a GPA of 3.0 and higher; retirement discounts; loyalty
discounts and more.
* Be sure to ask the insurer if they have schemes to insure mare
than one car under a group scheme. Such schemes referred to as
multiline discounts have a huge umbrella of options, home
insurance, safety features, accident free driving, driver over
50 years old, anti-theft devices fixed, and so on.
For ready reference see:
* Insure.com at http://info.insure.com/auto/autosave.html has
useful information, a privacy policy in place, is updated daily,
has links to over 200 companies that sell various kinds of
insurance, a toll free line, and an option to buy insurance
online.
* Independent Insurance Agents and Brokers of America at
http://www.iiaa.org/na/default?ContentPreference=NA&ActiveTab=NA&
ActiveState=0 is one of the largest associations of independent
insurance agents and brokers. According to experts buying auto
insurance from agents can get you a good deal as it cuts out the
middleman. * InsWeb at http://www.insweb.com/ a site dedicated
to the lowering of insurance costs. Offers competitive quotes
from big players in the market like The Hartford, GMAC, AIG,
Travelers, Amica, and Liberty Mutual.
Remember insurance premiums are higher for high performance
cars. The premium depends on how high repair costs are, ready
availability of parts, and what the chances of car theft are.
Buy a car that does not require higher insurance premiums and
explore the market for the best deals.