Saving Money

A 12-Step Program For Car Insurance Shoppers

1. Comparison shop. Use an independent auto insurance broker like InsureMeOnline.com to get multiple quotes from multiple insurers, saving you time as well as money. But before you get started, you might want to check your state's department of insurance for a guide on the coverage you need. Sometimes they’ll show you sample car insurance rates. It’s a great way to begin.
2. Choose higher deductibles. The deductible is the amount of money you pay out of your own pocket after a theft or accident before the insurance coverage kicks in. Simply put, higher deductibles = lower premiums. As an example, if you increased your collision coverage deductible from $200 to $500, you could reduce your premium by as much as 30 percent, potentially saving as much as the difference in the deductible. If you plan on having more than one accident a year, this may not be a good deal. But for everyone else, it’s money in the bank.
3. Older cars may not need comprehensive or collision insurance. Take a moment and find out how much your car is worth at Kelley Blue Book. If it’s close to $2,000 (or less) you may be paying more in coverage than you could collect on a claim. Drop the comprehensive and collision insurance and save yourself a hunk of change.
4. Look for low-mileage discounts. Some insurance companies offer discounts to drivers who log fewer miles on their cars each year. The mileage threshold varies from carrier to carrier, so look around and see if your commuting habits match someone’s discount program.
5. Claim discounts for air bags and other safety features. Most policies now offer discounts for safety features, but you have to be proactive about claiming them.
6. Claim a discount for your antilock brakes. This is a discount some states actually require from car insurance carriers. Other car insurance companies offer it no matter where you live. But again, you have to be proactive about claiming it.
7. Ask about other discounts. These vary from carrier to carrier, so read the application carefully and give yourself credit for anything you can. Look for things like:

• Insuring two or more vehicles
• No accidents in 3 years
• Antitheft devices
• Long-time customer discount
• Driver over the age of 50
• Driver training course completion
• Good student discount

1. Get your car insurance policy from the carrier of your homeowner’s insurance. If you own a home, this worth looking into. Getting two policies from a single insurer qualifies you for what’s called a “multiline” discount. While this still can’t guarantee your homeowner’s insurance carrier will come with the lowest car insurance rate, it increases the likelihood. Get the multiple quotes mentioned in step one, then go to your homeowner’s insurance carrier and see if they can beat the other quotes.

1. See if you are eligible for a group discount. If you work for a large employer, or if you belong to a professional group or other organization, call to see if they have a group auto insurance deal going. If not, you might suggest they consider getting one.
2. Think about car insurance whenever you move. A lot of the cost of your car insurance keys off your zip code. Premiums tend to be lowest in rural communities and highest in cities. Population density is the trigger. To paraphrase an old saying, “road-miles don’t cause accidents, people do.”
3. Look at lower-profile cars. If you’re a serial Porsche driver, the cost to insure your vehicle against theft will remain high. Lower profile vehicles not only attract fewer thieves, they are often cheaper to repair by requiring fewer specialized parts made only in one Bavarian town that takes the entire month off for Octoberfest. InsureMeOnline.com recommends having at least three models in contention when you’re shopping for a vehicle, and then taking everything into consideration, including the cost of car insurance, before buying.
4. Keep your credit in good shape. The use of credit scores in determining a driver’s auto insurance rate class is a growing practice in the car insurance industry. Currently it varies by state and by carrier, but statistics have definitively proven that good drivers with good credit records have the fewest accidents of all. If you can finagle yourself into this category, your premium rates will drop through the floor.