Tips for Saving Money on Auto Insurance

Auto insurance is an important — and oftentimes, mandated — purchase for most Americans. The average annual auto insurance premium nationwide in 2000 was $687 pervehicle. Here are some tips from the Utah Insurance Department to help you get the best value for your auto insurance dollar.

1. Maintain a Good Driving Record  
   
   Companies charge safe drivers (i.e., free of at-fault accidents or violations)lower rates for automobile insurance. Each company has different guidelines to determine what price an individual will be charged.
2. Comparison Shop 
   
   It pays to shop around before buying insurance, since prices can differ among companies. In addition to cost, you should also carefully consider other factors such as service, dependability and the financial condition of the insurance company.
3. Give Complete, Correct Information
   
   Give Complete, Correct Information When you call for a quote or fill out an application, give complete and correct information. Since your premium quote will be based on this information, it is very important that your information be as accurate and complete as possible.
4. Ask About Discounts 
5. Verify Your Information, Policy 
6. Consider Revising Coverage, Deductibles
7. Consider Cost of Insurance Before Buying a Car 
8. Regularly Review Your Policy
9. Get More Information    
10. Raise your deductible  If you have a $200 deductible on your policy, raising it to $500 could reduce the cost of collision and comprehensive coverage by up to 30%. Raising your deductible to $1,000 could lower your premium by 40% or more, according to the institute. Just make sure you have enough money put aside to cover the higher deductible amount in case you're in an accident. 
11. Take advantage of discounts. Many insurers provide a discount of up to 15% for teenage drivers with a B average or higher in school, Belden says. Some also offer a 5% to 10% discount for policyholders who take a defensive driving course.
    If the price of gas has led you to join a car pool or to take the bus to work, talk with your insurer, because you might be eligible for a low-mileage discount. You'll probably need to provide documents to support the change in your driving habits.
    And if you're in the market for a new insurance policy, a low-mileage discount "is definitely something to ask about when you're shopping around," says Bob Passmore of the Property Casualty Insurers Association of America, an industry trade group. "If you've got a car you only drive back and forth to church on Sunday, you want to make sure they know that."