Auto Insurance - Are You Paying Too Much?
Auto Insurance - Are You Paying Too Much?
By Chris Packard[Photo]Chris Packard
Level: Basic
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Auto insurance is important. It is also important to get the best value for the lowest price. A variety of options exist to help you lower your auto premiums. You can start with the car itself. do some research before buying a new car; you may be surprised by the rate differences between models. A high-performance car such as a Ford mustang costs more to insure that a Ford Focus with the same driver. Call your agent when you begin car shopping. He or she can provide you with information on rates for models in which you are interested.DiscountsAsk your agent about discounts available at various stages in life. You may be able to save money when you get married or graduate from college. If you have student drivers in your house, they can help lower their premiums by maintaining high grades. Many insurance companies offer good student discounts. Using one company for all of your insurance needs may also save you money. Some insurance companies offer discounts if you insure more than one car with them, or if you insure your car and home. Some companies even offer auto discounts if you have both auto and life insurance with them.CoverageIf the cost of a minor accident exceeds the value of your vehicle, you may consider dropping the collision coverage on your auto insurance policy. Collision coverage is needed to repair your car if you are involved in an accident. Some insurance companies may recommend repairing a car if the cost is below a certain percentage of the car's value. If the repair costs exceed this percentage, the company is more likely to total your vehicle and give you an amount of money equivalent to the value of the car. Also, you can reduce your premiums by raising your deductible. However, you need to be sure, you can afford the higher deductible if you ever need to file a claim.Drive SafelyA clean driving record is key to holding down your insurance costs. Some companies offer additional discounts if no one in your household has received any traffic violations. Drive defensively to avoid accidents. Be aware your surroundings and expect other drivers to make mistakes.Chris Packard is an Investment Solutions Representative with COUNTRY Insurance and Financial Services in Waterloo, IL. To learn more or to receive Chris' newsletter please contact him directly at chris.packard@countryfinancial.com. You can also visit his website at http://www.countryfinancial.comArticle Source: http://EzineArticles.com/?expert=Chris_Packard