How can I reduce my Auto Insurance Premium?
Since automobile insurance is the most expensive of the personal insurance policies, we will concentrate here.
Drivers Education Course If you are still in high school, take a drivers education course. It can be worth up to 15% off all of the coverages your driving effects.(property damage, collision etc,) The discount applies in most states until you are 21!
Accident Prevention or Defensive Driving Course This course is not only for young drivers or those with bad driving records. This course is usually 6 hours long and is worth 10% off all of the coverages your driving effects. The National Safety Council will have information on locations and availability.
Passive Alarm Systems A passive alarm is one that arms itself soon after you close the door and requires no intervention and has an audible siren (a keypad in the car that set before leaving, is NOT passive). Passive alarms can apply to a 15% discount to your comprehensive or other than collision coverage.
Vehicle Recovery Systems Commonly known as "Lo-Jack", vehicle recovery systems are activated when your vehicle is stolen, allowing police to track the location of the vehicle. When combined with Passive alarm systems, the discount on your comprehensive can increase to 25%.
Higher Deductibles=Lower Premiums Most policies have a standard $200 or $250 deductible on Comprehensive and Collision. Today's higher priced vehicles are more expensive to insure, thus higher deductibles, ($500,$1000) bring greater savings. Be sure you can afford that increase in deductible before making the change to your policy.
Multi-Car Discounts Combining two or more cars on the same policy can reduce your premium by up to 25% per car (varies by company).
Multi-Policy Discounts Placing your Auto & Home insurance with the same company can bring a 5-10% discount on both policies (varies by company).
Loss or Claim Free Discount Many companies offer a discount of 5% to policyholders who are claim free in during the last 3, 4 or 5 years. If you are claim free, inquire about the availability of this discount.
Full coverage on a 1986 Chevette?? Many people still carry full coverage on vehicles with little or no book value. For example- your car is worth $600 and you pay $180 per year for Comp & Collision with a $500 deductible. The car is a total loss in an accident. You would receive $100 after the $500 deductible, but paid $180 for full coverage, so you lose $80.
College Students Many companies offer discounts for students away at school with high GPA's. If you have your car away at school with you (in the same state) and have your own policy, inquire as to the premium for rating your policy in your schools town (using dorm or apartment address). This is especially true for students who live in cities, but go to
school in an urban area. If your car is under your parents policy and you DO NOT TAKE IT TO SCHOOL, they may be eligible for a discount if you are 250 miles or more from home. You will need a copy of your dorm or tuition receipt to prove residency and may have to change the address on your drivers license.
REVIEW YOUR POLICY It pays to review your policy at least annually. Situations change over time, i.e.: -Perhaps you used to drive 45 miles to and from work and now live around the block from the office (or better yet, retired). Distance to work makes a big difference in the rate.
-If you are in your states assigned risk plan, check with your broker as to when you will be eligible for insurance through normal channels.
-Maybe you are still carrying full coverage on that 1986 Chevette.
-If you don't know how to read your policy, now would be a good time to become educated. Call your agent or broker to review the coverages, but have your questions ready before
you call.
