I've written before how to save on car insurance including tips on shopping for car insurance, how to save on car insurance and saving on car insurance. I've also included Suze Orman's take on auto insurance.
So what's one more post, huh? ;-)
There are some really good thoughts in this article from Money on how to save on car insurance (which, by the way, costs an average of $939 per year): Here are Money's tips:
1. Get credit for driving less. Find out from your insurer what the low mileage discount is. Generally if you drive less than 7,500 miles a year you'll qualify for a 5 percent discount. Driving less than 5,000 miles a year will give you 10 percent off your insurance.
2. Check your credit report. More than 90 percent of auto insurance companies use your credit information to determine how likely you are to file a claim on an insurance policy. If you don't pay your bills on time, you're going to pay higher premiums.
3. Get a professional discount. In some states large insurers like Allstate give discounts for people in certain low-risk professions.
4. Join the club. You may get discounts, not only on what you do, but how you spend your time. Some insurance companies offer discounts to young people who volunteer or join civic or community organizations, like the Eagle Scouts, says David Champion of Consumer Reports.
5. Drop coverage on your old jalopy. If you have an old car, you may want to consider dropping collision and comprehensive coverage. That's because you'll probably pay as much in premiums over a few years as you'd pay to replace or repair the car.
My thoughts on each of these (in the order they appear):
1. We get credit for this discount on my wife's car since it's a big year if she drives 5,000 miles.
2. I've posted before that having the right credit score can literally save you thousands and even provided tips on how to boost your credit score. This is just one more example why it's important to take care to manage your credit score.
3. As a policy, I ask to see a list of all their potential discounts to make sure I get as many as I can.
4. I save a bit on my car insurance because of a club membership.
5. I'm not in this boat (we usually sell before our cars get this old -- for safety/hassle reasons), but I sure would do it if I got to that point. Why spend $2,000 in premiums for a car that's worth $500?
It's not just your credit score. It's your CLUE report they check too. It's information collected by the careless folks at ChoicePoint. (Remember they got hacked?) If you have filed a claim before, they figure you're more likely to file again and therefore they raise your rates.
FWIW, being a college graduate usually gets you into the alumni club and a discount! That's how I got a solicitation that saved me money on insurance.
And shop around! It's worth it.
Posted by: mapgirl | May 02, 2006 at 09:09 AM