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Get More Savings by Choosing the Right Auto Insurance Coverage for You

by Ryan Yates

What is the right auto insurance coverage to get?. It all depends on you and your car insurance needs. Now, be honest. Are you a good driver? More to the point – do you have a good driving record? Let’s just assume that you do.

With a good driving record, the options open up for you, so take advantage of them. Always remember to shop around and get 3 or more quotes from different car insurance companiess. But before you start making calls and searching on the internet, be prepared with some basic but important info that might help bring you savings for your auto insurance coverage.

I know that times are tight, but if you have the resources and can afford it, request for higher deductibles and/or pay the entire year’s worth of your premium in one lump sum. Deductibles are what you pay before your insurance coverage kicks in. Both higher deductible and lump sum premium payments can bring you substantially lower costs.

Do you need homeowners insurance or car insurance for more than one vehicle? Then you should ask your provider about discount for multiple policies. Most companies will offer this for your patronage, but you should definitely still shop around. It’s possible to find more savings buying from two different insurance companies despite the multiple auto insurance policy discounts.

Do you work for a large company or belong to professional groups or any other organizations? Find out if you might qualify for any group discounts. If you carpool, take public transportation, or ride your bicycle to work, you may be eligible for an infrequent driver car insurance discount. Some companies provide savings to drivers who use their car below a certain mileage each year. Many insurers will also give discounts if your car has safety features like air bags, antilock brakes, car alarms and more. For older cars, you might want to consider dropping collision and comprehensive coverage. It generally doesn’t make sense to maintain such coverage for cars worth less than $1,000. You only get the actual cash value of the car if it is totaled.

Now, you’re better equipped to find that right auto insurance coverage for you. There are plenty of car insurance providers out there ready for your business, so don’t be afraid to compare and ask questions. After all, you’re the one in the driver’s seat.

{ 8 comments… read them below or add one }

Nunzio Bruno August 28, 2010 at

This is one of those things that people don’t really understand and kind of just sign where the agents tell them to. It’s important to know what you’re getting into and if it IS really what you want. Nice insight here!

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Jeffrey Kosola August 30, 2010 at

@Nunzio, very true my friend. So many people just blindly get whatever is cheap. Taking a few minutes to understand what you buying is so important.

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Canada Finance August 31, 2010 at

I use to work in Auto Insurance in the UK as a sales advisor. It always knocked off alot of money to raise the deductable, so I use to advice customers on this all the time.

They also had an additional product called an “Excess Protector” (Deductable is called Excess in the UK) which would refund $800 of your excess back if you have an accident for like $50.

Hopefully the insurance companies will introduce this and make insurance allot easier to use canadians!

Thanks for the article by the way Jeff.

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Jeffrey Kosola September 2, 2010 at

@Canada Finance, the Excess Protector sounds very cool. Maybe they will follow suit here someday. Insurance not one of my favorite topics, but the difference in prices between companies is amazing!

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Tracy August 31, 2010 at

Insurance companies are the most pointless things in the whole world. Car insurance I should say, they turn away about a million claims every year. The whole point of having insurance is to guarantee that the person who is paying for the coverage is covered. Its a very bad system and the consumer/customer more times then not will not get any money for the coverage that they’re paying for.

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Jeffrey Kosola September 2, 2010 at

Hi Tracy, I agree some companies may have crazy policies that don’t allow them to cover certain expenses, but what else can you do? What alternative are there since every state requires some type of auto insurance in order to register a car?

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Andrew September 9, 2010 at

Two favorite points here are getting multiple quotes to compare at the beginning…and to consider dropping some of the insurance in the case of an old or beat up car (when it’s not worth the insurance to cover a “crappy” car). Great advice!

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Jeffrey Kosola September 10, 2010 at

@Andrew It’s amazing the difference between companies – the multiple quotes angle MUST be looked at for almost every sizable purchase. When I was looking for car insurance, the difference was over $500 per 6 month period for the SAME coverage.

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