Useful Insurance Information

1. Be sure to request a higher deductible

When you are making a claim, the amount of money you pay before your insurance policy starts to pay is your deductible. When you request a higher deductible you can reduce your premium costs substantially. For example, if you were to increase your deductible and expand it from $250 to $500, you could reduce the cost of your collision and comprehensive coverage by as much as 15 percent or 30 percent. If you were to select as much as a $1,000 deductible you might save as much as 40 percent or more. Bear in mind that claims when they do occur, only occur on the average of once every 11 or 12 years so the likelihood of having to pay the deductible is small.

2. Make sure to shop around for insurance costs before buying a car

When you decide to buy a new car you should first get an insurance quote before you buy. In part, your premium reflects the cost of your car, what it costs to repair it, its overall safety record and the likelihood that someone might steal it. This means that many cars and particular models will cost less in insurance premium than others. When there are automobile features that are designed to reduce the chance of injury or having the car stolen, several insurers will offer you a discount. Examples of this are anti-theft devices, air bags, anti-lock brakes, and daytime running lights. There are even states where insurers are required to provide discounts to automobile owners whose cars are equipped with air bags or anti-lock brakes.

Those cars that are regularly stolen, that the thieves seem to prefer, insurance premiums for them often cost more. The Insurance Institute for Highway Safety will give you information to help you decide what car to buy.

3. Reduce coverage for older model cars

When you are driving an older model car, you should think about getting rid of collision and/or comprehensive coverage. When the car itself is not that expensive, it may not make sense to continue insuring it for its worth. This applies when it is at least 10 times the amount you would pay for coverage in value. When a car is worth less than $1,000, the general rule is not to pay for collision of comprehensive coverage, since any claim payment you would be receiving would probably not substantially exceed your premiums minus the deductible. The worth of your car is available through any auto dealer or bank. You can also go online at check out its Kelley Blue Book value.