Auto Insurance

In this post, I'll focus primarily on ways to reduce the cost of auto insurance. If you need detail information on a specific component of the auto insurance policy, please post a comment or email me and I'll do my best to address your question.

Since most states require liability insurance, you have no choice but to purchase it (if you have a car). So, it makes good sense to shop around for the best deal. You'll have the most flexibility in choosing better rates if you and all drivers that you're insuring have good driving records. This generally means that you have not had any traffic violations within the past two years, or any accidents within the previous three years.

Another way to reduce your premium cost is to increase your deductible. Many folks carry a very low deductible (like around $100), which is extremely expensive. Increasing this to $250, $500, or even $1,000 can have a dramatic impact on your insurance costs.

Yet another option that one can consider for reducing auto insurance costs is to drop all but your required liability coverage on an older vehicle. If the vehicle has gotten near to the end of its useful life, chances are that an accident would cause more damage than the car is worth.

You may also consider driving a cheaper car - or a car that the insurance industry has determined has a less likely chance to cost a great deal for repairs. There can be a dramatic difference in rates between similar autos - check with your favorite insurance agent for more information.

Lastly, consider your affiliations - such as professional organizations or auto club memberships. These organizations quite often offer discounts on auto insurance to members.

Until next time...

jb