Save on Car Insurance

1. Comparison shop: Most people are aware that the insurance industry is highly regulated. However, few are aware that each company determines it's own policy rates based on their own unique set of crtieria (in most states). The result is insurance prices for the same coverage that can vary by $100s, sometimes over $1000 from company to company.

The best place to comparison shop is online, as it is far less time consuming than calling from agent to agent for quotes. There are Internet sites that will provide you with several comparison rates from highly rated insurance companies. The two best sources I have found are Progressive and Consumers Car Club.

2. Raise deductibles: deductibles are the amount of money you are paying from your own pocket before the insurance company starts paying. For e.g. if you have a deductible of $200 menas that you pay the first $200 from your own pocket, and after $200 the insurance company pays the rest.

Requesting higher deductibles on collision and comprehensive coverage can lower your insurance costs substantially. Raising your deductible from $200 to $500 could result in a reduction in these premiums by 15% to 30%.

The reason why should you request this: most drivers will go years between claims and the savings realized in the first 12 months will cover the difference in out of pocket between a $200 and $500 decuctible.

3.Reduce coverage on older cars: Vehicles lose value rapidly as they age. After vehicles reach a certain value point it will not be cost effective to carry collision or comprehensive coverage policies on them. You don't want to pay expensive insurance for a low value car, do you?

4.Take advantage of discounts : There are several discounts that insurance companies offer provided you meet certain requirements. Never assume that you are receiving these discounts. Determine which ones you feel apply to you and then contact your agent to determine if you qualify and always ask for the discounts. Common discounts:

More than 1 car on the same policy
No accidents in 3 years
No moving violations in 3 Years
Drivers over 50 years of age
Successful completion of a driver training course
Anti theft device(s)
Low annual mileage driven
Vehicle equipped with automatic seat belt(s) Vehicle equipped with air bag(s)
Vehicle equipped with anti-lock brakes
Good student (driving teens with B average or better)
Auto and homeowners coverage with the same company
College students living away from home without a car
Not all companies offer all of these discounts, if your does not, it is likely you will be able to save by comparison shopping.

5. Buy the "right" car: Some cars are much more expensive to repair than others and thieves tend to tagret some vehicles much more than others. These are significant factors in the cost to insure a vehicle. I do not believe that an auto insurance policy should determine your quality of life, but be aware of these factors. As a sidenote, if I recall correctly the #1 car on the stolen car list is the Honda Accord.

6.Live in the right place: Where you live is a major factor in the cost to insure a vehicle. Costs tend to be lowest in rural communities and highest in large metropolitan areas. I don't believe that auto insurance should be the determining factor in where you choose to live, but you should be aware of the potential added costs to insure your vehicles prior to making a move.