INSURANCE CHECK LIST
Shopping for cheapest auto insurance? The price you pay for your auto insurance can vary by hundreds of dollars, depending on your driving record, the type of car you have and the insurance company you buy your policy from. Here is a list of things you can do to save money.
- Get at least three price quotes
- Choose a higher deductable
Your deductible is the amount of money you pay out-of-pocket before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage premium by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. However, keep in mind that you’ll need to have the amount of the deductible on hand should something happen to your car.
- Reduce coverage for older cars
Consider dropping collision and/or comprehensive coverage on older cars. It may not be cost-effective to continue insuring cars worth less than 10 times the amount you would pay for coverage. Any claim payment you receive would not substantially exceed your premiums minus the deductible. Claims occur on average only once every 11 or 12 years. Auto dealers and banks can tell you the worth of a car, or you can look it up online at Kelley Blue Book.
- Take advantage of low-mileage discounts
Some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who carpool to work.
Your credit rating may affect what you pay for insurance, so monitor it carefully. You can get this information directly from the three major credit-rating agencies (Equifax, Experian, Trans Union). There are also various Web sites that allow you to check your credit rating and provide tips on how to improve your score.
Each car insurance company will determine prices based on its past loss analysis. Since each auto insurance company’s experience will differ, even within the same geographic area, the rates will therefore be different.
Get car insurance cost price quotes comparisons, then you will be able to choose the company with the best car insurance price for the coverage that suits all of your requirements.
Top U.S. insurers are included in our auto insurance rate comparison system. Remember:
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Your car insurance policy may include five coverages. Each coverage is priced separately.
- Medical Payments or Personal Injury Protection (PIP)
- Property Damage Liability
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