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To stay on the road to savings when it comes to auto insurance, there are five steps you can take. "Reviewing these five steps could help you save hundreds of dollars on your auto insurance premium," says David Pratt, consumer marketing director for Progressive Auto Insurance.
1. Shop around. The average difference between the highest and lowest auto insurance premium available to the same consumer from different companies is $515 for a six-month policy. Review your coverage occasionally. Talk to companies you recognize, discuss your opinion with an independent agent and get written confirmation of quotes.
2. Don't carry excess coverage. Insurance companies only pay claims equal to a car's actual cash value or market value, so comprehensive and collision coverage may not be worth keeping on an older car that has depreciated. It's generally recommended that you consider dropping collision coverage after four years, or when the collision premium equals ten percent of the car's market value. Understand that by doing so, you will not be covered for damages to your car if it overturns or collides with another object.
One coverage you should NOT try to save money by eliminating is uninsured/underinsured motorists coverage. This coverage protects you if you're involved in an accident with an uninsured driver, or a driver with inadequate limits of liability. You should also be aware that your uninsured motorist coverage WILL NOT pay for damage to your car or your property.
3. Raise your deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15 to 30 percent.
4. Drop rental reimbursement coverage. This will pay for some or all of your car rental expenses while your car is being repaired or until you buy a new car. Policies and costs vary for this type of insurance, but there are strict limits on the extent of the coverage.
5. Update the information your insurance company has about you. You may be eligible for a rate reduction if you have gotten married, moved to the suburbs, no longer insure a younger driver, installed an anti-theft device or if it has been at least three years since your last traffic violation.
For more information call 1-800-AUTO-PRO, visit progressive.com or a local
independent agent. Many motorists may drive down their auto insurance
costs by following a few suggestions.
Five Ways To Save On Auto Insurance
To stay on the road to savings when it comes to auto insurance, there are five steps you can take. "Reviewing these five steps could help you save hundreds of dollars on your auto insurance premium," says David Pratt, consumer marketing director for Progressive Auto Insurance.
1. Shop around. The average difference between the highest and lowest auto insurance premium available to the same consumer from different companies is $515 for a six-month policy. Review your coverage occasionally. Talk to companies you recognize, discuss your opinion with an independent agent and get written confirmation of quotes.
2. Don't carry excess coverage. Insurance companies only pay claims equal to a car's actual cash value or market value, so comprehensive and collision coverage may not be worth keeping on an older car that has depreciated. It's generally recommended that you consider dropping collision coverage after four years, or when the collision premium equals ten percent of the car's market value. Understand that by doing so, you will not be covered for damages to your car if it overturns or collides with another object.
One coverage you should NOT try to save money by eliminating is uninsured/underinsured motorists coverage. This coverage protects you if you're involved in an accident with an uninsured driver, or a driver with inadequate limits of liability. You should also be aware that your uninsured motorist coverage WILL NOT pay for damage to your car or your property.
3. Raise your deductible. According to the Insurance Information Institute, raising your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15 to 30 percent.
4. Drop rental reimbursement coverage. This will pay for some or all of your car rental expenses while your car is being repaired or until you buy a new car. Policies and costs vary for this type of insurance, but there are strict limits on the extent of the coverage.
5. Update the information your insurance company has about you. You may be eligible for a rate reduction if you have gotten married, moved to the suburbs, no longer insure a younger driver, installed an anti-theft device or if it has been at least three years since your last traffic violation.
For more information call 1-800-AUTO-PRO,
visit progressive.com or a local independent agent. Many motorists may
drive down their auto insurance costs by following a few suggestions.
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