Yahoo! Finance has highlighted some information regarding auto insurance from the Insurance Information Institute that can save you some money. Some of these are common sense, but others may be things to look at when it comes time to renew your auto insurance.
The Insurance Information Institute has nine suggestions to help you save on your auto insurance policies. Auto insurance premiums can vary from company to company and from coverage to coverage, so be sure to shop around.
1. Comparison shop.
Use consumer information provided by your state’s insurance department. Where they’re available, insure.com has published state insurance department auto rate guides. These guides tell you what coverages you need and show you sample rates, usually from th
e biggest companies. Visit your state’s page by choosing your state from the menu at the top of this page.
2. Ask for higher deductibles.
When you file a claim, a deductible is the amount of money you pay before your insurance company kicks in. Higher deductibles mean lower premiums. For example, increasing your deductible from $200 to $500 on collision coverage could reduce your cost by as much as 30 percent.
3. Drop collision and/or comprehensive coverage on older cars.
If you own a car that’s worth less than $1,000, you’ll probably pay more for the coverage than you would ever collect on a claim. Your bank can tell you how much your car is worth, or check out the Kelley Blue Book.
For more, check out: Nine Ways to Save on Your Policy
Author: Jeremy Vohwinkle
My name is Jeremy Vohwinkle, and I’ve spent a number of years working in the finance industry providing financial advice to regular investors and those participating in employer-sponsored retirement plans.
When I was a teenager, I had a 1996 Nissan that was definitely falling apart. I know that my parents saved on their auto insurance by not paying premiums for things that wouldn't even be worth it in the long run. I treated the car well, but teenagers are just more prone to accidents anyway. However, there are ways to get reduced rates if your teenagers have good grades.
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Higher deductibles has really brought my premium down. I raised my deductible to $1000 and my premiums lowered by $640.