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Automobile
insurance rates vary widely depending on the insurance company or agent
you choose, the types and amounts of coverage you want, and the kind of
car you drive. These are some things you can do to lower your insurance
costs:
Consider
Higher Deductibles
A deductible is the amount of money you will pay on a claim before your
insurance company has any responsibility to pay. By increasing your deductibles
on collision and comprehensive (fire and theft) coverage to $200 or even
$500, you may substantially reduce your insurance premiums.
Refuse Some Non-Mandatory Coverages
You should consider eliminating medical payments coverage on your automobile
policy since medical expenses are covered by no fault. If your car has
little value, it may not make sense to carry any collision or comprehensive
insurance.
Take Advantage of Discounts
Ask your insurance agent about the availability of discounts, including
these:
- MULTI-CAR
DISCOUNT - it generally makes no sense to insure different cars with
different companies.
- MULTIPLE
POLICY DISCOUNT - for example, you may save money if you buy both auto
and homeowner's insurance from the same company.
- DRIVER'S
EDUCATION DISCOUNT - both students and adults may qualify for discounts
for taking driver training programs.
- NON-SMOKER'S
DISCOUNT.
- ANTI-THEFT
DEVICES - auto alarm systems and other such equipment may qualify you
for a discount on comprehensive coverage.
- PASSIVE
RESTRAINTS DISCOUNT - some companies give discounts on medical payments
coverage for air bags and seat belts.
- ANTI-LOCK
BRAKES DISCOUNT.
- LOW MILEAGE
DISCOUNT - motorists who drive fewer than an established number of miles
each year may qualify for a discount.
- GOOD DRIVER
DISCOUNT - no recent accidents or moving violations may save you money.
- GOOD STUDENT
DISCOUNT - young drivers with good grades may produce premium savings.
- MATURE
DRIVER DISCOUNT - drivers over age 50 may be entitled to a discount.
Be a Good
Driver
Moving violations, especially for DUI or reckless driving, can have a
staggering impact on your rates.
Buy Cars Subject To Lower Rates
Automobiles that are expensive to repair, subject to a higher risk of
theft, or have a high statistical rate of bodily injury claims cost more
to insure. Check with your insurance agent about specific models before
making a car purchase.
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