Nine Ways to Lower Your Auto Insurance Costs

Website: Insurance Information Institute

Material Excerpted From: iii.org – Auto

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 insurance company to insurance company, so it pays to shop around and get at least three price quotes. Our Hometown agents can shop for you and take the stress out of finding the best options.

You buy insurance to protect you financially and provide peace of mind. It’s important to pick a company that is financially stable. Our agents can advise what the company’s rating is with AM Best. Independent agents like Hometown offer policies from several insurance companies.

Don’t shop by price alone. Ask friends and relatives for their recommendations.

2 – Before you buy a car, compare insurance cost

Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. You will need a VIN number to request a quote on a vehicle.

3 – Ask for higher deductibles

Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you could lower your costs substantially. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

4 – Reduce coverage on older cars

While we do not always recommend this, consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. You can look up your car’s value online at Kelley’s Blue Book (www.kbb.com). Review your coverage at renewal time to make sure your insurance needs haven’t changed.

5 – Buy your homeowners and auto coverage from the same insurer

Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers.

6 – 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 on a regular basis and have any errors corrected promptly so that your record remains accurate.

7 – Take advantage of low mileage discounts

Some companies offer discounts to motorists who drive a lower-than-average number of miles per year. Low mileage discounts can also apply to drivers who carpool to work.

8 – 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. Hometown currently has preferred rates for union members, firefighters, police, letter carriers and other municipal or group employees.

9 – Seek out other discounts

Companies offer discounts to policyholders who have not had any accidents or moving violations for several years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who 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.

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.

Call your local Hometown Insurance Agent to review your insurance premium & coverage today to make sure you are receiving the best rate possible at 1-800-568-SAVE (7283) or contact us by email at service@hometowninsurance.com for helpful information.

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