Presented by the Insurance Information
Institute and CBIZ
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.
Comparison Shop. 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.
Ask for Higher 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 and comprehensive cost by 15% to 30%.
Drop Collision and/or Comprehensive Coverages on Older Cars. It may
not be cost effective to have collision or comprehensive coverages on cars
worth less than $1,000 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.
Buy a "Low Profile Car. 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.
Take Advantage of Low Mileage Discounts. Some companies offer discounts
to motorists who drive fewer than a predetermined number of miles a year.
Consider Insurance Cost When Making a Move. Costs tend to be lowest
in rural communities and highest in center cities where there is more traffic
congestion.
Find out about Automatic Seat Belt or Air Bag Discounts. You may be
able to take advantage of discounts on some coverages if you have automatic
seat belts and/or air bags.
Ask About Anti-Lock Brakes. Anti-lock brakes improve steering control
and stability when a car is brought to a stop, thus reducing accidents. Some
states, including Florida, New Jersey and New York, require insurers to give
discounts for cars equipped with the brakes and some insurers have a nationwide
discount in place.
Inquire About Other Discounts. 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, and good grades for students.
For more information, call the National Insurance Consumer Helpline (NICH) at 1-800-942-4242
