Here are five suggestions to potentially reduce your annual car insurance premiums:
- Make sure your vehicles are properly rated as to mileage and use classification. Insurers typically charge based upon potential risks, and the more you drive a car and the riskier situations you put it in can mean increases in your premium. State Farm, for example, has a lower rate for vehicles driven under 7,500 miles per year and not for business purposes. Check the ratings on the vehicles in your household to make certain they match actual use. It is common for insurers to over-rate vehicles, resulting in higher premiums.
- Choose your coverages carefully. At some point, a car’s age and condition militate against paying for comprehensive and collision insurance. These are expensive coverages which may not be warranted for heavily depreciated vehicles. On the other hand, you might not want towing insurance coverage for a new car that is still under warranty.
- Choose your deductibles and coverage limits carefully. Ask your agent to do a comparison of premiums for the different deductible amounts which are available. Bear in mind that even the most minor damage to a vehicle today can result in a significant repair bill. By taking higher deductibles you are, in a sense, gambling, but most of us buy insurance to cover catastrophic losses, not every minor loss.
- Buy cars with anti-theft equipment, passive safety equipment and anti-lock brakes. Most insurers offer a discount for some or all of these safety features.
- Finally, contest every traffic citation. Rather than having to explain a blot on your driving record to your carrier, try to avoid that blot in the first place. Sometimes even a plea bargain can result in a reduced charge and the avoidance of points against your license.
While you are at it, have your agent compute your premiums with different coverage amounts. Here we suggest erring on the side of higher coverage limits.
— Kevin Palmer