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Here are ten suggestions to help you save on your auto insurance policies:
Comparison shop.
Get quotes from several captive agents (Mercury, Farmers, State Farm, All State, etc) and/or one broker who is appointed with multiple insurance companies. Note that there should be no broker fees added to your premium, unless standard markets decline your application due to number of points or accidents you have on your record.
Consider higher deductibles.
It will not help you save much, but higher deductibles lower your annual premium. The difference between say $250 and $500 can be only $20/year. Do you think it really worse savings?
Consider dropping collision and/or comprehensive coverages on older cars.
Full coverage is much more expensive than liability only. If your car costs less than $2,500 you will pay more for collision/comprehensive insurance than for car replacement.
Buy a “low-profile” car.
Cars that are expensive to repair or that have a high theft rate generally have higher insurance costs. The Highway Loss Data Institute publishes a report listing average collision and theft losses for 297 car and truck models. For example, the Institute’s most recent report shows theft losses for the 4-door Accura Integra (1999-2001 models) were a whopping 562% above the average for similar-sized cars, while collision losses were among the highest for the Mitsubishi Mirage, at 50% above average. The Insurance Services Office (ISO), an industry data-collection service, has determined that certain vehicles are capable of causing more damage than they receive while passengers in some vehicles are more likely to be injured than passengers in other autos. In 2004, ISO introduce a revised auto insurance rating system that recognizes these differences. Under this plan, liability insurance for that Mitsubishi Mirage, for example, would cost 30% more than the same amount of coverage for a Mitsubishi Endeavor and Personal Injury Protection would cost 50% more. As of this writing, not all insurers have adopted the new rating system, which makes it a particularly good time for comparison shopping.
Take advantage of low-mileage discounts.
Some insurance companies offer discounts to drivers who put fewer than a predetermined number of miles on their vehicles each year. To take advantage of these offers, you’ll have to provide accurate mileage information each year. You might also receive a discount if you can show that you use public transportation to commute to work. With today’s gas prices this is no brainier.
Check your credit history and correct inaccuracies.
Many insurance companies use insurance credit scores in figuring rates. Your score is based on information contained in your credit report. If your credit reports contain errors or inaccurate information, you may end up paying more for insurance than you need to.
Ask about discounts for antilock brakes, air bags and other safety features.
Some states, including Florida and New York, require insurers to give discounts for cars equipped with antilock brakes. Some insurance companies give the discount no matter where you live. Most policies also give discounts for air bags. Your insurance agent should let you know about these discounts when you purchase your coverage. However, the most savings will come when you install GPS car recovery system and have full coverage.
Check on group insurance and corporate discounts.
You may be able to get a discount through trade or professional associations that you belong to, or through your employer’s corporate benefits program.
Ask about other discounts.
Some companies offer discounts for insuring more than one car, also insuring your home with them (known as a multiline discount), having no accidents in three years, being a driver over age 50, taking driver training courses, and having antitheft devices. Plus, remember good-student discounts when you are insuring a student who drives.
Save on Repairs.
When an accident has happened and your comprehensive/collision coverage triggered some insurance companies offer discount on deductible if you use their auto shops. Often times those shops offer lifetime guarantee on all work, provide you with a replacement car.
In the end, with the globalization and overpopulation it becomes harder to afford a car, maintenance, traffics, parking etc. Therefore plan for future mass transit.