Unless you’re one of the lucky folks on Wall Street or heading up one of our fine transnationals, or living the life of Reilly dining on champagne and caviar inside the D.C. Beltway – if you’re among the majority of Americans who actually has to work for a living and make an actual, genuine contribution to society – chances are you are very interested getting the lowest auto insurance rates you can.
Deregulation hasn’t worked out terribly well for the average person when it comes to the petroleum industry (just ask the folks along the Gulf Coast these days), but it has brought positive changes to the auto insurance industry by forcing insurers in most states to compete harder for customers
Now, many insurers will send out advertisements, claiming they have the cheapest auto insurance rates – and for some potential customers, that may very well be true. But everyone’s situation is a little different. You as an insurance customer are going to have to do some serious due diligence of your own.
In addition, there are some things you can do to reduce the cost of your car insurance policy.
Consider the Value of Your Vehicle
These days, more and more working people are forced to make do with aging vehicles held together with spit, duct tape and bailing wire. If you have been driving your vehicle for ten years or more and have had it insured with the same company during this time, you’ll definitely want to check your policy to make sure you’re not insuring it for more than it’s worth. Once your vehicle’s value is less than ten times the annual cost of your policy, it’s time to jettison the collision and comprehensive coverage. You can determine this by consulting the Kelly Blue Book.
Raise Your Deductible
As you know, the deductible represents your out-of-pocket costs before a claim is paid. By raising your deductible, you can seriously lower your monthly or bi-annual premiums. If you are a safe, law-abiding driver and could afford to lay out $1000 for car repairs in case of an accident, this is a good way to go.
Shop Shop Shop
Take advantage of today’s deregulated insurance market and the World Wide Web. Thanks to the Internet, it’s easy to get dozens of quotes from as many insurers within thirty minutes.
Keep Your Driving Record Clean
This goes without saying – but it not only benefits you as the primary driver, it benefits others in your household as well. For example, common wisdom dictates that it’s better to buy a separate policy for a teenage driver – but if you have an excellent driving record, an insurance company may offer a discount when you add your teen to your own policy. This is enlightened self-interest on the part of the insurer; though teens are high-risk operators, the company is always interested in developing a long-term relationship with a potential lifetime customer.
Low Mileage Discounts
At least one insurer is currently experimenting with “per-mile” insurance, in which the driver pays only for the time s/he actually drives the vehicle. This hasn’t caught on nationwide, however; in the meantime, you can qualify for low-mileage insurance discounts while saving money and the planet by taking public transportation, riding a bicycle, or telecommuting.
If You Buy Another Vehicle…
Remember that the least expensive vehicle to insure is a plain, no-frills four-door sedan. Sport roadsters and SUVs are the most expensive; consider this when shopping for a new vehicle.
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