CONSUMER ALERT : TIPS FOR SAVING
ON YOUR AUTO INSURANCE
Auto
insurance is an important — and often mandated —
purchase for most Americans. According to the
National Association of Insurance Commissioners (NAIC), the average
annual auto insurance premium nationwide
in 2001 was $718 per vehicle. Here are some tips from the NAIC to help
you get the best value for your auto
insurance dollar.
1. MAINTAIN A GOOD DRIVING RECORD
Companies charge safe drivers (i.e., free of at-fault accidents
or violations) lower rates for automobile insurance. Each
company has different guidelines to determine what price an
individual will be charged.
2. COMPARISON SHOP
It pays to shop around before buying insurance, since prices
can differ among companies. In addition to cost, you should
also carefully consider other factors such as service, dependability
and the financial condition of the insurance company.
3. GIVE COMPLETE, CORRECT
INFORMATION
When you call for a quote or fill out an application, give
complete and correct information. Since your premium quote
will be based on this information, it is very important that your
information be as accurate and complete as possible.
4. ASK ABOUT DISCOUNTS
Ask your agent or company if you are eligible for any discounts.
Here are some discounts that may be offered:
• Two or more cars on a policy
• Participation in driver education courses
• Good student driver under age 25
• Mature driver (between 50 and 65 years of age)
• Airbags or other safety equipment
• Anti-theft devices
• Auto/home insurance on same policy or with same company
5. VERIFY
YOUR INFORMATION, POLICY
When you receive your insurance policy, check that the
information used to determine your premium is correct. In
particular, you should verify that:
• Your mailing and/or home address is correct
• Each vehicle is properly classified
• All discounts to which you are entitled are applied
• Your vehicle(s) make and model are correct
• All drivers’ age/birth date(s) are correct |
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6.
CONSIDER REVISING COVERAGE, DEDUCTIBLES
You may reduce your auto insurance costs by raising the
deductibles on physical damage (collision and comprehensive)
coverages. Be sure to review your current
deductibles to determine whether you can afford to absorb
a larger portion of your loss in the event of an accident.
Also, consider lowering or eliminating physical damage
coverages on older vehicles — unless a lienholder, such as
a bank, requires it.
7. CONSIDER COST OF INSURANCE
BEFORE BUYING A CAR
Insurance companies usually charge higher premiums for
cars that cost more to repair or offer occupants less
protection from accidents. Companies may also charge
more for cars that tend to cause more damage when
involved in accidents, such as certain sport utility vehicles
(SUVs).
8. REGULARLY REVIEW YOUR POLICY; UPDATE ACCORDINGLY
Regularly review your policy to make sure the basis for
your premium is as accurate as possible. Here are some
factors that can affect your premium:
• Adding or removing a vehicle from your policy
• Replacing an older vehicle with a newer one
• Adding or removing a driver
• Increasing or decreasing the number of miles driven
each year
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