Get More Mileage Out Of Your Auto Insurance
Over the past year, gas prices have done nothing but spiral upwards.
Consumer frustration has risen accordingly, due to financial constraints
as well as consumers' inability to purchase a new car or travel
as much as they might have intended.
As life continues to skyrocket at the pump, wouldn't it be nice
to bring down your annual auto insurance premium?
Whether you're insuring a sports car, sedan or SUV, here are seven simple ways to accelerate your savings:
rates. As always, it pays to shop around - at least twice
a year. In a study of auto insurance rates provided to more
than 107,000 consumers, Progressive Auto Insurance found that
rates from different companies for comparable coverage could
vary $500 or more every six months. That's huge. Which also
explains why comparison shopping is the number one way to save
money on auto insurance.
2. Raise your deductible. Go for the maximum collision and comprehensive deductibles you feel comfortable with - as they increase, your premium decreases. Raising your deductibles from $500 to $1,000 can save up to $400, depending on the company. And for older vehicles, consider eliminating collision damage altogether to save even more.
3. Believe in the "more is better" philosophy. If you put all your insurance needs in one basket (both auto and homeowners with the same company), and/or insure more than one vehicle on a single policy, you can (depending upon the company) save up to an additional 20 percent by taking advantage of attractive multiple car or multiple policy discounts.
4. Think carefully about your next car purchase. If you go for the fire engine red Corvette convertible, beware. It won't only be a beacon for highway patrol officers and car thieves, you'll pay for the privilege of owning a high-performance vehicle. Insurance companies use a premium rating system (from 3 to 27) for every car model, based on ratings received from the Insurance Services Office. The higher the number, the higher your premium. Call your insurance broker before you buy to find out the premium differences for the models you're considering.
5. Recognize your good student. Is your teenager of driving age in the top 20 percent of his/her class, and/or have a "B" or better grade point average? Good grades indicate a high level of responsibility and a commitment to succeed - and (if such discount is offered), can save you up to five percent on your policy.
6. Drive safely. Good driver discounts are awarded to those with no traffic violations or accidents within the past three to five years (the exact time varies by insurer). If you do get a speeding ticket, know that it will not only adversely affect your rates, but it will also usually take up to five years for your record to return to its previously clean condition. It pays to be an attentive, defensive driver.
7. Special discounts. Most companies also offer special discounts if you're a senior citizen, in the military (both active and retired), put low annual mileage on your car, operate your vehicle in a rural area, have memberships in organizations such as AAA or AARP, and/or work in a specific industry (e.g. engineers, scientists, mathematicians, teachers).
Visit www.insweb.com to save money on your auto insurance.
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More about auto insurance around the Web:
Saving Money on Auto Insurance: Five Tips
How to Save Money on Car Insurance