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Step 1
Look over the coverages on your auto insurance policy. Start with the towing and rental coverage: do you have it, and do you need it? If you already have a roadside service plan elsewhere, why pay for it twice? If you own several cars, and wouldn't need to rent a car in the event that one is in accident and goes into the shop for repairs, then do you want to pay for rental coverage on your policy?
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Step 2
If you have an old car of low value, do you want to carry collision auto insurance coverage on it? If the cost of collision coverage is, say, $300 per year, and your deductible in the event of an accident is $500...that's $800 right there before the insurance kicks in. If the car is only worth $1000, it may not be worth it to keep paying for the coverage.
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Step 3
Make sure all drivers' birthdays are listed correctly. In general, people ages 25 through about 55 get the best auto insurance rates. Make sure your tickets and accidents are listed correctly (not at-fault accidents cost less money than at-fault accidents, and seatbelt tickets cost less than speeding tickets). Make sure the right dates are listed, as the insurance company stops charging for them after 3 to 5 years.
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Step 4
Go to an independent insurance agent. They can quote your policy with many different companies and give you the most competitive auto insurance rate. Ask them to give you quotes with higher deductibles (that will save money on your auto insurance policy), and see how much of a difference it makes. The standard deductible amounts are $100, $250, $500, and $1000.
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Step 5
Make sure your cars are rated correctly. There is 'pleasure use,' when the car isn't being used to drive to work; 'work use' when it's driven to and from work; and 'business use,' when it's used in the course of business. A 'pleasure use' rating costs the least, while a 'business use' rating costs the most. Also: If you only drive 2 miles one way to work, but your policy lists you as driving 20 miles one way, correcting that could save you money on the auto insurance policy.
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Step 6
What many already know about saving money on auto insurance is: putting all policies (home, car, etc) with the same company will save money on all of the insurance. A clean record and no claims history saves A LOT of money on auto insurance. Having more than one car on a policy will lower the premium on both cars; if you own a business/company car that's on a business auto policy, many personal policies will still apply a multi-car discount. Credits are given for automatic seatbelts, anti-lock breaks, airbags, alarm systems, defensive driving course completion, and for kids: good student and drivers training courses.
Comments
amylaine said
on 3/18/2008 This is great info, Thanks.