9 ways to save on auto
insuranceBy
Bankrate.com Auto insurance can't be taken
for a test drive. But you can get a good deal -- if you shop around and
take some steps you might not have considered. See, you don't
just buy auto insurance. You actually buy several different types of insurance:
collision, comprehensive, uninsured motorists, bodily injury and so on. Some states
mandate certain insurance, and of course, lenders require coverage -- until the
car's paid for, it's their investment you're protecting. Sure,
an insurance agent can help you with these figures. But remember: The more insurance
you buy, the more commission the agent gets. So it's better to work this one out
yourself. Learn more about different types of auto insurance, and figure out how
much you can live with by reading "car
insurance basics."
Additionally, you can save money just by comparison
shopping. Though Americans love to shop around for cars and drive
several blocks to save a few cents on fuel, few U.S. drivers bother
to shop around for auto insurance. In fact, a survey of consumers
by Progressive Insurance found that only 20 percent will likely
shop around for auto insurance. Progressive's study also asserts
that the cost of a six-month auto insurance policy for the same
driver with the same coverages varies greatly from company to company
-- the difference between the highest and lowest-cost coverage averaged
$586.
So,
don't just go with your father's insurance company, or the first one you see in
the Yellow Pages, or even the same one you've been using for years. Shop around
when you buy a new vehicle and compare the rates again about once a year. You
can shop the old fashioned way. Call three or four local agents, giving each of
them your driving details. The Web, with its database and searching capabilities,
offers newfangled ways to shop for insurance, but it doesn't always save time
over calling. Whether you shop by phone or by Web, give the
exact same details to three or more companies and you'll end up with a range of
quotes. Should you simply pick the least expensive? Not quite. You want to make
sure this insurance company doesn't just cost less, but also provides the appropriate
service if you file a claim. For this reason, some people are willing to pay more
for a "name" insurance company. You can check an insurer's claims-paying ability
at Standard
& Poor's Ratings Service: Insurance. No one likes to buy insurance --
it's a product that's best when never used. But keep thinking about that $586
and suddenly a few minutes of insurance homework don't hurt so much. Although
shopping around for auto insurance is the No. 1 tip, it's not the only one. Here
are eight more ways to save -- including a few you may not have considered before:
- Get married and get older.
- Take a
defensive driving course.
- Ask about membership discounts,
because they're not always going to volunteer it.
- Install
a car alarm.
- Pay six months in full, twice a year, rather
than financing the premiums.
- Buy a car with safety features
such as anti-lock brake system, alarm and air bags.
- Move
to a "better" ZIP code. Areas where there are more uninsured motorists
and more wrecks get slapped with higher rates.
- Keep
your driving record clean so your insurance company is never tempted to raise
your rates.
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