September 2004  Email this  Print this
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SOLVED!
My Car Insurance Costs too Much!
Those TV commercials featuring ecstatic customers who saved money on their car insurance aren't just hype. After four years of stiff rate hikes, premiums are leveling off and, in some cases, falling.
But insurers are choosy about who gets a break. Start with your current insurer to make sure you're paying as little as possible. Then get additional quotes from the biggest auto-insurance carriers, including State Farm, Allstate, Progressive and Geico. Shop at an online marketplace, such as Insure.com or InsWeb.com. To find an independent agent, see TrustedChoice.com. Combine auto and homeowners insurance. Shop for both as a package, and you typically save up to 15% on each. Adding umbrella liability, or a life or health policy, increases the price break.
Pile on the discounts. A 10% to 15% multicar discount may be automatic, but other price breaks aren't always as obvious. Driving fewer than 7,500 miles a year usually qualifies you for a 5% to 10% discount. Premiums are lower if your cars have anti-theft devices, and you may pay less if you have safety features such as anti-lock brakes and daytime running lights.
Turning age 50 or 55 can trigger another break. Even your occupation can make a difference. For example, in California, educators, engineers, scientists and mathematicians get a 10% discount at www.esurance.com.
For the budget-busting teen driver, a B average usually earns 10% off; attending a driver's-ed course can mean another discount. You may also save by making your teen the principal driver of a lower-cost car -- especially a clunker that doesn't carry collision (see "Kids, Cars & Cash").
Drop collision and comprehensive on an older car. That can reduce your premium by one-third. Raising your deductible from $200 to $1,000 on any car can save you as much as 40%.
Buy a safer car. Premiums for collision and comprehensive coverage depend on accident and theft claims for cars like yours, plus the cost of repairing the vehicle. The more expensive the car, the more you pay.
You can reduce liability premiums, and payments for medical and personal-injury coverage, by driving a car that offers more protection for passengers and other vehicles. To size up cars for safety, go to StateFarm.com and search for "Vehicle Ratings."
Clean up your driving record. Three years without a ticket or accident are usually enough to qualify you for the lowest premiums available.
Polish your credit score. The better your credit, the higher your "insurance score" -- a slightly modified version of your credit score that insurers use to help set rates.
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