9 ways to lower your auto insurance costs

1. Ask for higher deductibles

Request higher deductibles on collision and comprehensive (fire and theft) coverage and lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive cost by 15 percent to 30 percent.

2. Drop collision and/or comprehensive coverages on older cars

It may not be cost effective to have collision or comprehensive coverage on cars worth less than $1,000 because any claim you make would not substantially exceed annual cost and deductible amounts. Auto dealers and banks can tell you your car’s worth.

3. Buy a “low profile” car

Before you buy, check insurance costs because fast and expensive cars that cost more to repair and are a favorite target for thieves have much higher insurance costs.

4. Take advantage of low mileage discounts

Some companies offer discounts to motorists who drive a limited number of miles a year.

5. Consider insurance cost in your neighborhood

Costs tend to be lowest in rural communities and highest in cities where there is more traffic congestion.

6. Discount possibility: automatic seat belt or air bag

You may be able to take advantage of discounts on some coverage if you have automatic seat belts and/or air bags.

7. Discount possibility: anti-lock brakes

Anti-lock brakes improve steering control and stability when a car is brought to a stop, thus reducing accidents. Some states, including Florida, New Jersey and New York, require insurers to give discounts for cars equipped with the brakes and some insurers have a nationwide discount in place.

8. Comparison shop

Prices for the same coverage can vary by hundreds of dollars, so it pays to shop around. Look online, ask friends or call your state insurance department. But don’t shop price alone.

The insurer you select should offer both fair prices and excellent service. Quality personal service may cost a bit more, but provides added conveniences. Ask companies what they would do to lower your costs and check the financial ratings of the companies with an online search engine to make sure they’re financially sound.

Once you’ve narrowed the field to three insurers, get price quotes.

9. Discount possibility: “other” discounts

Some insurers offer discounts for more than one car, no accidents in three years, drivers over 50 years of age, driver training courses, anti-theft devices, and good grades for students.

Source: Insurance Information Network of California

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