Auto Insurance Buying

Auto Insurance Buying Tips
 

Consolidate Insurance Policies

Insuring two or more vehicles with the same insurance company can save you between 10 - 15% on your premiums. Covering your home through the same can reduce your premiums by another 10-15 percent.

Increase Your Deductible

One rule of thumb is to carry the highest deductible you can afford. By increasing your deductible from $100 to $1,000, you could save up to 25%.

Install Anti-Theft And Safety Devices

Installing a vehicle recovery system such as Lo-Jack or Teletracer could save you up to 7-10% per year. There are other relatively inexpensive anti-theft devices such as "The Club", which locks the steering wheel in place, as well as having your Vehicle Identification Number (VIN) etched on each window.

Clean Driving Record And Safety Courses
While traffic tickets and auto accidents will increase your premiums, most insurance companies offer discounts to drivers with clean records. Also, some insurance companies will offer a discount if you attend a Driver Training School Program, and your employer might even pay the cost if you use a company vehicle for your job.

Reduce Coverage On Older Vehicles

If you have an older car worth between $1,000 - $2,000, you might be better off dropping the collision coverage. Check to see if your collision premium is more than the value of the car.

Non-Smoker Or Early Retiree Discounts

Some companies provide discounts for Non-smokers and Early Retirees. Insurers consider smoking a dangerous driving activity.

Park In A Garage

Sometimes the difference between getting auto insurance and going uninsured is where you keep your vehicle at night. Most thefts do not involve a garaged car and this is reflected in premium discounts.

Carpool With A Co-Worker

Most insurers surcharge premiums if the commute to work exceeds 3 miles. Carpooling with a co-worker may result in a discount for low-mileage use.

Drive A Conservative Car

Before buying a car you might want to find out how much your insurance will cost annually. Insurance companies consider certain cars easily damaged and expensive to repair, and other cars the target of thieves.

Looking for Auto Insurance Discounts

Are You Looking for Auto Insurance Discounts?
 

Saving money wherever you can is important to all of us. Car Insurance should be no different. Do not assume your insurance agent knows everything about you and your car.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. 

There are discounts for Car Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary.

Some insurers will give you a discount for having multiple cars. In some cases, this will only apply if you have two or more drivers.

Many insurance companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. Some companies honor you with a discount if you had prior limits on your previous policy. 

For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid-sized Sedan. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest. 

Keeping Auto Insurance Rates Affordable

Keeping Your Auto Insurance Rates Affordable
 

Do you consider the cost of car insurance before you buy your dream car? You should. The Highway Loss Data Institute analyzes the cost to insurance companies from theft, collision, and injury claims as they relate to cars.

Four-door cars have a 93% less chance of having a claim related to theft than their sibling two-door cars.

In addition, even though the 2002 Lexus IS 300 gets a "best pick" rating from the Insurance Institute for Highway Safety for its performance on crash tests, previous years' models of the same car are some of the most costly in terms of collision claims. "One of the factors that come into play there is the cost of repairing an expensive vehicle," says Russ Rader, with the Insurance Institute for Highway Safety.

What about safety? You may be surprised at some of the results. For example, the Porsche 911 has a 67% less chance for injury claims than the norm. Go figure. The Mitsubishi Lancer has almost double the injury claim rate over the norm.

Where does your car fit for injury theft and collision? What about your dream car? Consult the Highway Loss Data Institute for more information.