|
|
How To Save Money On Auto Insurance
Before providing some solutions to the rising cost of auto insurance,
it’s important to understand why auto premiums can go up, even
in the absence of a claim. When costs associated with auto repairs,
labor, medical costs, fraud and theft continue to rise, insurers
have to do more with the premiums collected. And who pays for these
increases? We do.
Cutting your costs
Here are some ways to save on your auto insurance without sacrificing
your insurance needs.
-
Comparison shop. Check with several insurance companies
and agents. Chances are that you’ll find differences in
service as well as premiums. Service should be a major factor
when making an insurance decision. Ask questions regarding their
claims handling process; how long they’ve been in business;
and insurance company financial stability or rating. Surf the
Internet for company information, and ask family and friends
for recommended insurance carriers.
-
Raise your deductibles. You can reduce your premiums
if you shoulder the smaller losses. Increasing your deductibles
from $200 to $500 could reduce your collision and comprehensive
premiums by 15–30%.
-
Choose the right car. Before buying a car, ask your
insurer how the premiums compare with similar models. Premiums
are usually higher for most luxury, sport and four-wheel drive
models because of repair costs and auto theft experience. Check
the Insurance Institute for Highway Safety’s Web site for
loss information at www.highwaysafety.org.
-
Contact the Ohio Department of Insurance for a free auto
insurance shoppers’ guide. It provides all types of
information, including average auto premiums by company. Call
1-800-686-1526 for a copy or download it from www.ohioinsurance.gov.
-
Eliminate collision and comprehensive coverages, especially
older cars which depreciate in value. A general rule is to eliminate
these coverages if your car is worth less than $1,000, as it
may cost more to insure it than what you’d collect after
a crash. Check with an auto dealer, bank or look up your vehicle’s
value in Kelley’s Blue Book (www.kbb.com).
Keep your auto liability coverage intact.
-
Ask about discounts. Many companies offer a multiple
car discount or a discount if you also carry homeowners or another
type of insurance with them. Some provide good student discounts
or allow a credit if a young driver is away at school more than
100 miles with or without a car, depending on the location.
Some companies provide discounts for safety equipment or devices.
There’s also a discount for seniors completing a state-approved
defensive driver course. (Click
here for a list of state-approved programs.)
-
Eliminate duplication of coverages. Some auto medical
expense coverages may duplicate insurance provided by your employer.
If you belong to an auto club that provides towing services
or it’s provided by the auto manufacturer, don’t duplicate
the coverage on your policy.
-
Reduce your daily driving. Statistics show that the
farther you drive, the more likely you are to be involved in
a crash—and the more you’ll pay for insurance. Some
companies offer discounts for driving fewer than a predetermined
number of miles.
-
Drive defensively. An at-fault accident or major traffic
violation can affect future increase premiums. In some cases
it can place you in a high-risk category. Some companies reward
policyholders for remaining accident-free for a certain period
of time.
-
Double-check how and where you park. Often the cost
of vandalism and auto theft is overlooked.
-
Avoid filing excessive or fraudulent claims. The more
claims you file, especially small ones that you can cover yourself,
the greater the likelihood that future premiums will reflect
this. Padding insurance claims negatively affects the premiums
we all pay.
-
Keep tabs on your credit. An Insurance Bureau Score
is a snapshot of your insurance risk picture based on information
in your credit report. It reflects your credit payment patterns
over time, with more emphasis on recent information. Many companies
take insurance scores into account when assessing a potential
auto insurance risk. To improve a score: Pay bills on time,
keep balances low on credit cards, and apply for and open new
credit accounts only as needed. Review your credit reports from
the three major credit bureaus annually to check for inaccuracies.
If you find errors, notify the corresponding credit bureau.
Click here for more information
on credit and insurance scoring which also provides a list
of credit bureau phone numbers and Web site links.
|
