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Lowering Car Insurance
Too many people call one or two insurance companies, choose what they believe to be a good policy for their car, and buy it. Unfortunately, if those same people would take the time to compare rates with many different companies they would quickly discover that coverage options and price can vary dramatically from one company to another. If you are in the market for new car insurance and interested in securing a lower rate while not sacrificing quality of coverage, consider the following tips:

Comparison Shopping – As you start looking at different companies and discussing the options for your car insurance, you will be amazed that you can save hundreds of dollars. Additionally, you should look at the consumer guides, which will provide information regarding companies that offer the best coverage for the best price. To ensure you are getting the best deal and protected, look into the financial rating of the company.

Increase your Deductible – Most people keep a deductible on their car of $250 or $500. If you were to increase that deductible to $1,000 on comprehensive and collision, the rate of your insurance could be reduced to as much as 30%.

Older Cars – If your car is an older model not worth more than $1,000, you might consider dropping the collision and comprehensive insurance and keeping only liability. The reason is that if the car should be in an accident, the deductible in many cases will be more than the car itself. Therefore, by keeping the collision and comprehensive, you are over-insuring.

Medical Coverage – Car insurance policies include medical coverage should there be an accident and you or your passenger is hurt. This coverage will also cover third parties if the accident is your fault. If you have good health insurance through work or your spouse, you might be able to reduce or eliminate the medical coverage with your car insurance. This option will depend on the state where you live but if you can eliminate the insurance, called Personal Injury Protection or PIP, you could save up to 40%.

Low Profile Car – If you have not bought a car, before you rush out and get that hot little sports car, you should talk to your insurance agent first. This is especially important for males under the age of 25! Expensive and sporty cars typically cost more and are therefore hot items for theft. This means the insurance to cover the car can be double the cost of a non-sports car. On the other hand, the same rule would apply for older cars. Because the car may be too old and not worth much, you may have, difficulty getting it insured. Therefore, prior to buying, shop around for rates based on the various models you are interested in.

Area Insurance – Many people have no idea this is even an option for car insurance. If you live in a rural area where you are not required to drive on highways and busy streets with heavy traffic on your commute to and from work, you can lower your insurance rates by getting area insurance.

Seat Belt and Airbag Discounts – If your car has automatic seatbelts and airbags, most insurance companies will offer a significant discount.

Good Student Discount – If you are a student or looking at cars for your child who is a student, most insurance companies will offer “good student discounts” that certainly help with the rates.

  • Miscellaneous Discounts
  • Good student discount
  • Discount if you have been accident free for the past three years or have not had any moving violations for three years
  • Over age 50 discounts
  • Discounts for anti-theft devices and anti-lock brakes
  • Driver’s training discounts
  • Discount for low mileage

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