There is no mystery about buying auto insurance. If you want to save money, you need to understand what factors influence your premiums. Once you understand these factors, you can put your new knowledge to work and find the best coverage at the lowest rate.
Here are some guidelines to follow when shopping for car insurance:
· When you file a claim, the deductible is the amount of money you pay toward the loss before your insurance company pays the claim. If you accept a higher deductible, your premiums will be proportionally lower. It is important to be sure you can afford the out-of-pocket expense of the deductible you select.
· If your car has a Kelley Blue Book value of less than $2,000, you’ll probably pay more for collision/comprehensive coverage than you would collect on a claim. Insurance companies use their own criteria to determine fair market value for vehicles; however, the Blue Book can serve as a good indicator of whether you should maintain your collision/comprehensive insurance. You can find these values at www.kbb.com.
· If you own a car that suffers from a high theft rate, or is expensive to repair, you’ll face higher premiums. Buy a car that’s not a thief magnet and/or doesn’t require expensive replacement parts and your rates will be significantly lower.
· “Sunday Drivers,” meaning drivers who use less than the predetermined number of miles on their vehicles each year, may be eligible for a discount.
· Where you live impacts the car insurance rates you pay. Premiums in rural communities are generally lower than in urban areas. The increased traffic and higher incidence of crime that are hallmarks of city life, increases the risk that you will eventually file a claim.
· Most insurers give discounts for air bags and other safety features.
· Some states require insurers to offer discounts for cars equipped with antilock brakes. There are also insurance companies that offer standard discounts for antilock brakes regardless of the geographic location in which you live.
· Additional discounts you may be eligible for include: insuring more than one car, insuring your home with the same carrier, having no accidents in three years, being a driver over age 50, taking driver training courses, and using antitheft devices.