Save Money on Your Auto Insurance
By Fisher Swanson
In nearly every state you have to purchase auto insurance if you
drive. Here are some tips for spending less on auto insurance and getting the
most for your money.
Ask Around
Ask people you know and trust what insurance
they use. Find out if they have ever filed a claim and how smoothly it went.
Really cheap insurance doesn't amount to much if they offer horrible service.
Get Multiple Quotes
Get 3 or 4 quotes from different insurance
companies. Write down as much information as possible about each insurer. If
the agent or representative is not willing to answer your question it's
probably not a good company to buy insurance from. Don't buy from the first
insurance company you call!
Check Your Credit History
Some insurers factor in credit history when they calculate their
rates. Unresolved issues in your credit history could affect your insurance
rates.
Pick Your Car Wisely
The cost of the car, make and model
(sometimes even the color) will affect your insurance premiums. If you are
buying a new car be sure to check with your insurance company to find out what
the insurance for that car will be. If you have an older car and are not
financing you can get by with less insurance and save a lot of money.
Ask About Discounts
Ask if there is a safe driver
discount if you have a good driving record. If you don't drive much ask about a
low-mileage discount. Here is a list of discounts that Insurance Information
Institute (www.iii.org) recommends asking
providers about.
- $500
deductible
- $1,000 deductible
- More than 1 car
- No accidents in 3
years
- No tickets in 2 years
- Drivers over 50-55
- Driver training
course
- Defensive driving course
- Anti-theft device
- Low annual mileage
- Air bag
- Anti-lock
brakes
- Daytime running lights
- Student with good grades
- Joint
auto and homeowners coverage
- College students
- Long-time customer
- Other discounts
There are a lot of discounts that may be available to you but you often have to
ask to get them. Create a table with the list above for when you call around.
You can find a printable table at
http://www.thriftyfun.com/downloads/auto.html
to help you keep track of the insurance companies you call.
Accident
Prevention Course
Some insurance companies offer reduced premiums if
you complete an accident prevention course. Some insurance companies offer as
much as a 10% discount.
Reduce Your Coverage
If you are
buying your car on time you will be required to have comprehensive coverage but
the day that you pay it off you can reduce your coverage and save a lot a money.
Less insurance brings more risk but if you are a safe driver the odds are that
you can get by with liability and uninsured driver insurance.
Last But Not Least
Drive safe and watch your speed.
Fisher Swanson is a regular contributor to the Daily Thrifty Tips newsletter. To
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