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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 the best rates. Eachprices differently in different places, for differenttypes of insureds. If one finds a company that is substantially cheaper, evaluate the cost savings. Long-term policy�holders sometimes get special treatment. If one does switch, do not let the old policy run out until the new one is in force.carsurance
  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 Raise the deductible on Collision Insurance from $250to $500 � You pay less for the policy if you are willing to incur thesmaller bills
  3. 3. Drop Collision Insurance on an older car - Some folks are paying morefor coverage than the car is worth Remember that if an insured gets intoan accident, 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 Even with adiscount, high priced policies are no bargain
  4. 4. More Discounts - There may be additional discounts for young driverswho take driver education, teetotalers, non-smokers, graduates ofdefensive-driving courses, senior citizens, students with good grades,families whose teen�ager drivers go to school more than 100 milesaway, cars parked in a garage or off the street, low mileage car driverswho car pool, cars with air-bags or seat belts that wrap around individualsauto�matically, cars with four-wheel, anti-lo�ck braking sys�temsand cars with anti-th�eft devices Describe exactly how the car is used- a car carsurance driven for pleasure costs less to insure than a car usedfor everyday commuting Pay the premium annually - it costs more to payin monthly or quar�terly installments Share the car with the teenagerin the family - When teens have there owns cars, or drive the family carmore than half of the time, they are principal drivers and cost more toinsure They cost less when they are occasional drivers using thefam�ily car less than half the time Be sure to name the teenager as anoccasional operator of the least expensive car
  5. 5. If they do own their own car, it would be best to co�ver them under thefamily policy; other�wise, they will most likely go into the very costlyState High-�Risk Pool Drive safely - Rates will go up if the re�cordshows conviction for drunken driving, chargeable accidents (meaningthey are at least partly the insureds fault), or several speeding ticketsReform - If an insured has had a bad driving record and lands in aHigh-Risk Pool and is tagged at a higher rate by the insur�ancecompany, he/she should work keeping their records squeaky clean Makeall 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
  6. 6. It is possible to save $1,000 or more by living in a small city, a suburb orthe country Be aware - A young single person away at college shouldknow if a roo�mmate has had tickets or acci�dents By lending thecar to this type of individu�al, insur�ance rates could be affectedGet Married - married males under 30 pay the same premiums as olderdrivers Older people Discount - If an insured is 50 or older and takes aDe�fensive-Driv�ing Course approved by the State Motor VehicleDepartment, a discount of 5-15% could be realized upon completionTravelers - If an insureds policy covers Collision, it would be best toreject the costly Collision-Damage Waiv�er when renting a car
  7. 7. Little usage - If an individual does not own a car but rents a vehicle often,con�sider a Non-Owner Liability Policy for $200-$300 a yearExtended 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
  8. 8. carsurance