Five Ways To Save On Auto Insurance
(NAPSI)-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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