Hold Down The Cost Of Auto Insurance

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Between 1987 and 1994, the cost of car insurance rose 44%. Some states have seen premiums rise by more than 75%. The rates for insurance on big, bold sport utility vehicles that pose a danger to others are expected to rise.

These are my strategies for lowering premium costs.

*Receive price quotes every few year. A third of drivers say it’s been six years since they last purchased a new insurance policy. Another 20% stated that they have never shop for a new policy.

Smart comparison shopping can save you hundreds of dollars per year. For identical coverage, there can be more that a twofold price difference between different insurers.

The cost of your insurance depends on where you live, the age and driving profile of you and your family.

It is important to know if an insurer is interested in covering you and your family. You may get a quote from one company for coverage that is too expensive, but another company might be interested in your business and offer you a great deal.

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Brochures containing low-cost insurance providers can be found at your state insurance department.

* Compare quotes from multiple insurance companies. Do not assume that the largest or most well-known company will offer the best deal. Local and regional insurers may offer the best rates.

Example: A company might charge 25%-30% less than other larger companies in the same area.

Because they have lower overhead and are more efficient than their larger counterparts, some insurers are less expensive. Get quotes from companies like AMICA Mutual Insurance Company or GEICO to get no-load (no commission) estimates.

* Avoid living in big cities. Insurance premiums can be high in big cities. You can reduce your insurance premiums by up to 50% if your car is not located within the city limits.

This strategy is only applicable if you are able to use your car for pleasure on occasion, such as weekends, and if there is someone nearby who will let you park your car.

Warning! This arrangement must be legal. You can use the car to commute to work or to drive from your apartment in the city to your condo at the ski resort every weekend. However, you will have issues if the insurance company discovers that the garage arrangement is not valid.

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* Decide who will drive which cars in your family. This is particularly important if there is a teenager driving the car or another family member who is difficult to insure, perhaps due to a few accidents.

Some insurance companies, but not all of them, will allow you to state that a driver is not allowed to drive the most expensive vehicle you own.

Example: You could save thousands of dollars per year by stating that your 16-year old will not be allowed to drive the Mercedes family car. However, you must be true to what you tell the insurance company. If your teenage driver is involved in an accident and drives the Mercedes, you will not be covered.

*Don’t get rid of unnecessary coverage. But don’t forget the basics. It is often not worth paying for towing or labor coverage. If you have excellent medical coverage at work, medical payments coverage is not available.

You and your family should have health insurance through work.

Your policy’s liability section should cover any claims made against you by passengers in your vehicle. Make sure you have enough liability coverage. A $1,000,000 umbrella policy suffices.

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It is important: This protects you from property and medical claims made by others in cases where you or your family members were at fault.

Uninsured motorist coverage is not to be ignored. It pays for property damage caused by an uninsured driver or someone who doesn’t have enough insurance to cover your costs.

With 20% of drivers driving without insurance, this coverage is essential. In New York, Miami, and Los Angeles, the ratio is as high as 50%.

Carson Danfield, an “Under The Radar” Internet Entrepreneur, has been quietly selling various products over the past 8 years. You may not have heard of him, but you might have visited his websites and purchased his products in the past.