|
Val-U-Web Insurance
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.
Shop Around
- 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.
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 cost by 15% to 30%.
Older cars
- It may not be cost-effective to have collision or
comprehensive coverages on cars worth less than $1000
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.
Health Insurance
- If you have adequate health insurance, you may be
paying for duplicate medical coverage in your auto policy.
In some states, eliminating this coverage could lower your
personal injury protection (PIP) cost by up to 40%.
Type of Auto
- 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.
Location
- Costs tend to be lowest in rural communities and
highest in center cities where there is more traffic
congestion.
Travel Time
- Some companies offer discounts to motorists who drive
fewer than a predetermined number of miles a year.
Discounts
- You may be able to take advantage of discounts on some
coverages if you have automatic seat belts and/or air
bags.
- 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, anti-lock
brakes and good grades for students. See the following
page for a guide to these and other discounts.
Reviewed and Approved by:
United States Office of Consumer Affairs
Federal Consumer Information Center, Pueblo,
Colo.
|
