10 Ways to Save on Auto Insurance (part 2)

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4.  Decrease Coverage on Lower Value Cars

If your car is new, or is being financed, of course it makes sense to purchase “Full Coverage” to protect your investment. Remember as a “rule-of-thumb”, insurance works best when it is used to protect you from major losses rather than annoying yet small claims. With that advice in mind, if your auto is no longer a “late model” or does not have a value over $3,000.00, consider dropping collision and comprehensive coverage. Ask your agent to provide you with a quote both with and without these coverages. Car Insurance rates very by age of driver, car, location and several other factors; so it is best to talk to your agent and find out what coverage make the most sense for you. At Urban Insurance Agency we offer rates from multiple auto insurance companies, and can help find you the lowest rates for the coverage you need.

5.   Part-Time Drivers

Most companies give a discounted rate for a part-time or occasional driver. This is is not going to save you money on your car insurance  if the part time driver is an older driver, but can make a dramatic difference when the part time driver is a young driver. But remember to ask your agent, and not assume they gave you the discount.

6.       Exclude a driver
Not all drivers are created equal when it comes to insurance. The rates on teen drivers are much higher than drivers in their 30s or 40s. If you have young drivers in the household that do not drive your bike, you can save a considerable sum by taking them off your policy. A word of caution: If you exclude a driver from your policy and they do take your cycle out for a whirl and have an accident; you will not be covered for that loss.

7.       Check Your Driving Record
I know this might come as a great shock to you, but people down at the Illinois Secretary of State’s office sometimes make mistakes. The same thing holds true for our customers that live in Indiana, and Michigan — I have had clients whose driving record (MVR) show accidents and tickets that were inaccurate. Such mistakes happen more frequently than many agents or representatives at the DMV are willing to admit. These mistakes can significantly affect the cost of your car insurance. That is why we suggest you Verify your driving record on a from time to time to check for any errors. At Urban Insurance Agency we work with our customers to remove errors from your MVR reports.

8.       Don’t Put In The Small Claims
I understand this can sound a bit “Self-serving coming from an insurance agent, but the fact is, insurance works best when it is used for which it was designed – to protect you against significant financial losses. Insurance companies today share loss data through a central network. As a result these losses follow you from one insurer to the next. Companies count “Frequency” as well as total payout; so if you have $610 in damages and a $500 deductible It might be prudent to avoid having evidence of a the claim on your record. Please understand, I am not suggesting that drivers do not claim major losses, you paid for the car insurance, yes you have every right to put in a claim, I am only suggesting that it can be wise to decide what is in “YOUR” own best long-term interest.

9.      Raise the amount of your deductible

Once again, Auto insurance works best when it is used to protect you from major losses rather than annoying yet small claims. The truth is, dollar for dollar, it is the first few hundred dollars of coverage that cost the most. Insurance industry statistics have shown a clear link between  drivers that select a higher deductible on their policies and the number of claims that they are likely to file. Fewer claims not only saves the company the expense of the repairs, it also save them the cost of “Man-hours”. By sharing in a small amount of the risk, you can realize large savings. The deductible is the amount of loss paid by the policyholder. The bigger the deductible, the lower the premium charged for the same coverage

10. Combine policies with single insurer

It is common for an insurance company to provide substantial discounts for drivers that have multiple policies with them. But here again it is wise to consult a licensed insurance agent and ask for quotes from multiple companies, look at different options. The idea is to find the lowest rates on car insurance, but not to violate company rules and place your self at risk of having a company deny your claim as a result of you “material misrepresentation”. Here is yet another example of the wisdom of talking to an insurance professional.  At Urban Insurance Agency we offer rates from multiple auto insurance companies, and can help find you the lowest rates for the coverage you need.

To return to the begaining » Read “10 Secrets to Saving On Car Insurance”…

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