6 New Year's resolutions: Auto insurance

6 smart insurance New Year's resolutions
Auto insurance

Because auto insurance premiums may be tied to how often you drive and to your vehicle model, make certain you've alerted your insurer to any changes in driving habits, says Ron Moore, a senior product manager for MetLife Auto & Home.

Consumers should "make sure their policy accurately reflects how their vehicles are used," he says. "Back when gas prices were low, we wanted to take the big luxury car to work. Now, with gas at $4 per gallon, you're driving the compact, and that can make a difference."

Consider dropping collision and comprehensive coverage on older vehicles to save money, he adds. Collision pays the costs of repairing cars following accidents, while comprehensive pays for losses not caused by accidents, such as theft or fire damage. Since your insurance company will repair or replace only up to the value of the vehicle, paying for full coverage on an aging car may not be worth it.

Another great resolution is to drive carefully, says Pete Moraga, spokesman for the Insurance Information Network of California.

"The most important thing that determines what you pay for auto insurance is your driving record," he says. "Observe the law."



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