Virtual Entrepreneur

How To Cut Car Insurance Costs

CNNMoney.com:
Prune coverage on old cars - Once your vehicle is worth less than 10 times what you pay each year to insure it, get rid of comprehensive and collision. Find your car’s estimated value at kbb.com.

Raise your deductible - The point of car insurance is to protect you from catastrophic costs (your emergency fund should cover stuff like dents and broken windows).

Raise your deductible from $200 to $1,000 and you could save more than 40% on premiums, says the Insurance Information Institute.

Nab discounts - Most insurers offer price cuts for such things as having anti-lock brakes; having been accident-free; having taken a defensive-driving course; and even for using the same insurer for your home policy. For more, see the auto insurance checklist at iii.org/individuals/auto.

These can take up to 25% off your premium. But your insurer won’t come to you with them; call the company and ask what discounts it offers.

Dig up competing quotes - This is the most work but could have the greatest payoff. Go to naic.org to find your state insurance commission Web site, where you can download a car insurance buying guide.

This often lists scenarios (Mary is a 34-year-old married woman who drives a Chevy Tahoe) with sample rates from the biggest insurers in the state.

Pick the example closest to you and the five insurers with the lowest rates. Call them for quotes.

If the state guide doesn’t list insurers, get the 5 best quotes at insweb.com, but note that the site doesn’t include State Farm.

Next, check with an independent agent (get a name at iiaba.net) to see if any insurers you haven’t checked can beat your top 5.

Sidestep hassle - Make sure any insurer with a better quote is legit. Vet it via your state’s insurance commission site; look especially for the ratio of complaints to number of policies written.