One of the best ways to keep your auto insurance costs down is to have a good driving record.
Listed below are other things you can do to lower your insurance costs
1. Shop around
Prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or access information on the Internet. Your state insurance department may also provide comparisons of prices charged by major insurers.
You buy insurance to protect you financially and provide peace of mind. It’s important to pick a financially stable company. Check the financial health of insurance companies with rating companies such as AM Best and Standard & Poor’s and consult consumer magazines.
Get quotes from different types of insurance companies. Some sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several insurance companies. Others do not use agents. They sell directly to consumers over the phone or via the Internet.
Don’t shop by price alone. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company. Pick an agent or company representative that takes the time to answer your questions. You can use the checklist on the back of this brochure to help you compare quotes from insurers.
2. Seek out other discounts
Companies offer discounts to policyholders who have not had any accidents or moving violations for many years. You may also get a discount if you take a defensive driving course. If a young driver on the policy is a good student, has taken a driver's education course, or is away at college without a car, you may also qualify for a lower rate.
When you comparison shop, inquire about discounts for the following:*
Antitheft Devices
Auto and Homeowners Coverage with the Same Company
College Students away from Home
Defensive Driving Courses
Drivers Ed Courses
Good Credit Record
Higher deductibles
Low Annual Mileage
Long-Time Customer
More than 1 car
No Accidents in 3 Years
No Moving Violations in 3 Years
Student Drivers with Good Grades
3. Maintain a good credit record
Establishing a solid credit history can cut your insurance costs. Most insurers use credit information to price auto insurance policies. Research shows that people who effectively manage their credit have fewer claims. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need, and keep your credit balances as low as possible. Check your credit record regularly and have any errors corrected promptly so that your record remains accurate.
4. Take advantage of low mileage discounts
Some companies offer discounts to motorists who drive a lower than the average number of miles per year. Low mileage discounts can also apply to drivers who carpool to work.
5. Ask about group insurance
Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business, and alumni groups, or from other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible.
*The discounts listed may not be available in all states or from all insurance companies.
The key to savings is not the discounts, but the final price. A company that offers few discounts may still have a lower overall price.
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