October 26, 2009

How To Save Money On Auto Insurance Without Cutting Corners

According to car-accidents.com, there were 6.4 million car accidents in the U.S. in 2005, costing drivers more than $230 billion and injuring 2.9 million people. This shows that if you are going to drive a car, you're going to need auto insurance. It's a way to protect you and the passengers in your car from unnecessary medical and repair expenses if you are in an accident. But finding the right auto insurance can be confusing and costly. There's liability insurance, collision insurance, comprehensive insurance and uninsured/underinsured motorist insurance. Then you've also got deductibles, premiums and add-ons to consider. Here are some ways to cut down the expense of your auto insurance without leaving yourself unprotected.

Getting the best auto insurance rate begins even before you start shopping for auto insurance quotes. It begins even before you have a car. The model car you purchase, and even the color of that car, can affect your auto insurance rates. Why? Some cars are more expensive to repair than others. Some are more likely to be stolen and some are safer to be in if you get in an accident. The insurance companies track these trends and use them to determine their auto insurance rates.

Once you've found the car that will get you a good insurance rate, begin getting auto insurance quotes from different insurers. Rates vary widely between insurance companies. You don't have to call each individual company yourself. An independent agent can collect auto insurance quotes for you, or you can try various Internet insurance quote sites. Also, make sure to ask for any discounts the company might offer – like safe driver discounts, safety feature discounts or multiple policy discounts (it may save you money to have your homeowner's, life and car insurance with the same company). When setting a deductible amount, select the highest deductible you can afford. Higher deductibles lower your premiums, though you'll have to pay more before your auto insurance will begin to cover any claims you might have. However, if you're a safe driver, this won't be a problem. Select at least $500, but if you can afford it, raise your deductible to $1000.

While you can easily drop comprehensive and collision coverage for older cars (or if you're a safe driver, cars that have been paid off), don't skimp on things like uninsured motorist coverage or medical coverage. Some companies also have an extra charge if you pay your auto insurance premiums month to month. Pay six months of the premium at once and you'll eliminate those extra charges.

Ultimately, you can save a decent amount of money on auto insurance without cutting corners as long as you do your research and understand the coverage in your policy.