The National Safety Commission Alerts

Safety is No Accident. Visit the National Safety Commission - America's Safety Headquarters for driver safety information, auto recalls and teen safe driver tips.

Friday, February 23, 2007

Money-Saving Auto Insurance Tips

Premiums Can Vary by Hundreds of Dollars - Shop Around for the Best Deal

  • Buy homeowners and auto coverage from the same insurer. If you don't mind changing the company you insure your home with, you could save money on both policies. Many insurers will give you a discount for purchasing both homeowners and auto insurance from it. And if your homeowner's insurance carrier also offers auto insurance, see if they have a dual policy discount, and get an auto quote from the company.

  • Before you buy a car, compare insurance costs. Find out how much it will cost to insure the vehicle. Although you can afford the car, the cost to insure it may be unaffordable. Vehicles that are expensive to repair or have a high theft rate will cost more to insure.

  • Look for safe driver discounts. You could save on insurance if you have a clean driving record. Find out if your potential insurer will reward you for safe driving.

  • Request a higher deductible. Not surprisingly, the more cost you are willing to pay if you are involved in an auto accident means the insurance company will have to pay less—and they will charge a lower premium if you choose to take on this added risk.

  • Decrease coverage on older cars. As you car loses its value, why keep high collision and/or comprehensive coverage? Consider dropping one or both. To learn the current value of your car, visit Kelley Blue Book and N.A.D.A. online price guides.

  • Low-mileage discounts. Many insurance companies will charge less if you drive less. If you only drive on short trips or you live close to where you work, you might be able to save on auto insurance. Calculate how many miles you drive per year, and present this information when you are receiving an auto insurance quote.

  • Maintain good credit. Recently, the majority of insurers are using credit scores to calculate insurance premiums. If your credit score is high, you are more likely to pay less on auto insurance.

  • Inquire about other discounts. There is an array of other discounts offered by insurance companies. When you shop, compare discounts for:

    • Several vehicles on the same policy

    • Experienced drivers

    • Driver safety courses

    • Anti-theft devices

    • Vehicle safety devices (anti-lock brakes, air bags, etc.)

    • Student drivers with good grades

    • College students away from home

    • Long-term customers

Not all insurers offer these discounts. Don't forget that you are looking for the best coverage for you and your car at the best available price. Discounts are great, but an insurer that offers less discounts may still have the best price.

Shop around. You wouldn't just purchase the first new car, refrigerator or any other big-expense item, would you? So it's in your best interests to get several quotes on your auto insurance to find the best deal before you buy.

For Florida drivers, read "10 Ways to Save on Florida Auto Insurance" and consider these ten way to lower your Florida Auto Insurance before switching companies for a cheaper rate.

© 2011 All rights reserved.
The National Safety Commission, Inc.
PO Box 3359
Ponte Vedra Beach, FL 32004-3359

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