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  1. 1. Compare Prices - this could be the best way to lower premiums. Some insurers charge up to 50% more than others do. Insurers do not advertise prices, so it does require some work to find a plan that is low cost. No single company always has thebest rates. Each prices differently in different places, for different types of insureds. If one finds a company that is substantially cheaper, evaluate the cost savings. Long-term policy�holderssometimes get special treatment. If one does switch, do not let the old policy run out until the new one is in
  2. 2. Find out if the state has an Auto-insur�ance Buyers Guide - Somecon�sumer- minded insurance commission�ers publish price guidesshowing various Auto Insur�ance charges This is a true public service To see if the state has a buyers guide, call the insur�ancecommissioners office in the state Do not buy Collision andCompre�hensive Coverage from the lender who finances the car, orany insurer he/s�he recom�mends - historically, this will be highcost insurance Buy a car that is inexpensive to repair - any qualifiedinsurance agent can tell which cars are money-eaters and which are notBy this measure, a Ford Escort might cost $400 less to insure than aCadillac Eldorado
  3. 3. Raise the deductible on Collision Insurance from $250 to $500 � Youpay less for the policy if you are willing to incur the smaller bills DropCollision Insurance on an older car - Some folks are paying more forcoverage than the car is worth Remember that if an insured gets into anaccident, the insurer will not pay any more than the cars Fair MarketValue The value is generally cal�culated as if the car were in "mint"condi�tion, minus the cost of making repairs, minus a charge forunusually high mileage Earn a discount by insuring all cars with thesame company and by buying Home�owners/tenants Insurance theretoo One role of thumb: shop first forthe cheapest insurer
  4. 4. Even with a discount, high priced policies are no bargain MoreDiscounts - There may be additional discounts for young drivers who takedriver education, teetotalers, non-smokers, graduates ofdefensive-driving courses, senior citizens, students with good grades,families whose teen�ager drivers go to schoolmore than 100 miles away, cars parked in a garage or off the street, lowmileage car drivers who car pool, cars with air-bags or seat belts thatwrap around individuals auto�matically, cars with four-wheel,anti-lo�ck braking sys�tems and cars with anti-th�eft devicesDescribe exactly how the car is used - a car driven for pleasure costs lessto insure than a car used for everyday commuting Pay the premiumannually - it costs more to pay in monthly or quar�terly installmentsShare the car with the teenager in the family - When teens have thereowns cars, or drive the family car more than half of the time, they areprincipal drivers and cost more to insure
  5. 5. They cost less when they are occasional drivers using the fam�ily carless than half the time Be sure to name the teenager as an occasionaloperator of the least expensive car If they do own their own car, it wouldbe best to co�ver them under the family policy; other�wise, they willmost likely go into the very costly State High-�Risk Pool Drive safely -Rates will go up if the re�cord shows conviction for drunken driving,chargeable accidents (meaning they are at least partly the insuredsfault), or several speeding tickets Reform - If an insured has had a baddriving record and lands in a High-Risk Pool and is tagged at a higherrate by the insur�ance company, he/she should work keeping theirrecords squeaky clean
  6. 6. Make all valid claims - Drivers often do not make small claims on theirinsurance companies for fear of driving up their insurance rates but theclaim might not affect the rate Example: an insured is not normally heldresponsible for certain ty pse of Physi�cal Damage, a windshieldbroken by flying gravel, accidents caused by ani�mals, accidents notthe insure�d�s fault, and claims below a certain limit, $300 or $600,even if insured is at fault Move - Low insurance rates give an in�suredyet one more reason to avoid big crowded cities It is possible to save$1,000 or more by living in a small city, a suburb or the country Be aware- A young single person away at college should know if a roo�mmatehas had tickets or acci�dents
  7. 7. By lending the car to this type of individu�al, insur�ance rates couldbe affected Get Married - married males under 30 pay the samepremiums as older drivers Older people Discount - If an insured is 50 orolder and takes a De�fensive-Driv�ing Course approved by theState Motor Vehicle Department, a discount of 5-15% could be realizedupon completion Travelers - If an insureds policy covers Collision, itwould be best to reject the costly Collision-Damage Waiv�er whenrenting a car Little usage - If an individual does not own a car but rents avehicle often, con�sider a Non-Owner Liability Policy for $200-$300 ayear
  8. 8. Extended Trips - If an insured is away for a long time without the car,drop the Collision and Liability for that period Insurance Company TrackRecord - Price and coverage are not the only con�siderations when itcomes to purcha�sing Auto Insurance Individuals should also checkthe reputation and soundness of the insurance company itself beforepur�chasing a policy The best way to ac�complish this is to call theState In�surance Commissioner and ask about the financial status andclaims paying history of the company
  9. 9.