Other than having a good record as a driver to keep auto insurance costs down, the Insurance Information Institute has outlined nine recommendations in a report entitled, “9 Ways to Lower Your Auto Insurance Costs.”
First, owners are urged to ‘shop around’ to find the best valued price quotes. Collecting information through direct phone calls or through the internet is a good start. Even local state insurance departments may be able to offer information regarding major insurers. It would be wise to pick an insurer with a track record of financial stability by looking into consumer periodicals and rating companies. Price is not regarded at the best indicator of a good deal as customer service history may be a weightier consideration.
Second, policyholder should be wary to compare insurance expenditures before purchasing a vehicle. This would mean looking at the sticker price of the car, repair cost, and safety record (overall). There are several companies which provide discounts to mitigate the likelihood of theft or injury. It would also be advisable to canvas information from the Insurance Institute for Highway Safety website.
Third, request for higher deductibles, which are the payments made before a policy takes effect. The higher the deductibles, the lower the cost obligated to comply with. Comprehensive and collision coverage can drop as much as 15% to 30% if, for instance, the deductible is hiked up to $500 from $200.
Fourth, reduce the amount of coverage on older cars. If the premium is worth more than 10 times the value of the car, then coverage would not be economically sound.
Fifth, purchase two or more types of insurance (including insurance for your vehicle) from the same insurer so that you may be able to avail of a multi-policy discount.
Sixth, build and maintain good credit history since insurers may use it as a basis of giving lower rates. Prompt bill payments and relatively low balances are some factors that companies are on the eye out for.
Seventh, capitalize on ‘low mileage discounts’ since there are several insurers who provide lower rates for car owners who drive less than the typical annual mileage. Car pooling is one way of achieving low mileage.
Eighth, inquire about ‘group insurance’ since some insurers give discounts to policyholders who avail of group plans through their employers or other association or group.
Lastly, drivers are encouraged to be on the look out for other discounts depending on special offers by any company. Not having any accident record for a certain number of years are considered by some institutions as worthy of being offered a discount.