You can
save several hundred dollars on auto insurance for the same coverage simply
by picking a different company, says Lankford. With that much cash at
stake, this is one area where it really pays to shop around.
Begin your shopping online to get a feel for what's
out there. Compare auto insurance rates on Bankrate
to get started. Of course, the downside of shopping around on your own
is that it takes time, so that's where independent agents come in handy
-- they're familiar with many different companies' offerings and can
help with strategies to get the lowest rates. Web sites let you compare
premiums but not strategies, for the most part. Read Bankrate's story
on how
to find an agent.
Round out your search with a quick visit to the
Web sites of a few large companies that don't sell through independent
agents. "They have a lot of good information to take advantage of as
well, on Statefarm.com or Progressive.com," Lankford says. "You should
check out Allstate too," she adds, "because they have a really good
quote service."
Now is a good time to shop because most companies
are changing pricing policies, Lankford reports. They are using advanced
computer capability to fine-tune individual risk profiles and the result
is a sea change in pricing.
Use Bankrate's handy work
sheet to compare auto coverage.
Make sure you
have enough liability coverage. These days, $50,000 coverage is not enough, Lankford
says, "I recommend $500,000 to $1 million, especially if you have a young driver."
Raise your deductible to offset the costs of an increased liability limit.
If you drive a clunker, check out its value at Edmunds
or Kelley Blue Book's site to find out if it makes sense to drop collision
and comprehensive altogether. Instead, save for the day it's finally
ready for the scrap heap.
Credit scores
are gaining importance on the insurance pricing scene, but not all companies are
giving those digits the same weighting ... yet. It might be time to pay more attention
to your credit score. Bankrate's story on credit
scores tells you what to do. Various discounts
for car insurance are available, so ask for a list. Usually policyholders with
young drivers need to follow this the most closely, but everyone should take advantage
of as many discounts as possible.
If you are considered high risk or have a teenager,
ask your agent to recommend strategies for saving. "In many cases, the
only way you can get coverage on the child is if he remains on the parents'
policy," says Lankford. This strategy can be cheaper than trying to
get an individual policy for your child because of the availability
of multiple car and other discounts. Lankford suggests getting an umbrella
policy to increase liability protection while young drivers are on your
policy.
