LOWER YOUR CAR INSURANCE BILL

by Lauren K. O'Neil
4/30/2006

Next time you sign your monthly check for car insurance, think how you’d feel if the bill was 10%, 20%, or even 50% lower.

Truth be told: by watching your shopping and driving habits, and paying attention to special discounts, you can save thousands of dollars on car insurance over the years.

Take advantage of special discounts. Many car insurance companies have partners, which means you can receive an automatic discount on your car insurance for being a customer or member of an affilliate. Check your current company’s listing of affiliated organizations and businesses – you just might be eligible for a discount.

Shop Around, Shop Around, Shop Around. Don’t rush when buying car insurance, and don’t buy the first car insurance policy that sounds good. Make sure you set aside a few good hours to call different car insurance companies and get quotes on car insurance.

Why? Different insurance companies cater to different needs. A single, 23-year-old male with 2-3 tickets within the last year will probably find his best deal somewhere other than where a 36-year old couple with no tickets will find theirs.

Don’t be afraid to switch. It’s just an insurance company - you are allowed to look at other car insurance companies and compare rates, especially when your circumstances have changed.

Every few years, make sure you are getting the best deal out of your current car insurance company, and get quotes from other car insurance companies (including new companies) to check if they’d better suit you.

Look into multi-car and umbrella policies. Many car insurance companies offer multi-car policies for families who wish to create a joint account, which save you up to 25% overall.

Umbrella policies combine homeowner’s insurance, auto insurance, and other types of insurance, and offer broader protection in case of accidents. While they can be expensive, it might be the right choice for your situation – and it can’t hurt to look into them.

Take note of Highway Safety Ratings when buying a new car. The safer your car is, the less expensive it will be to insure.

Based on statistics and crash tests, the National Highway Traffic Safety Administration (www.nhtsa.gov) lists which cars are the safest. Choosing a safe car should be your top priority when shopping for a new vehicle.

Also, safety features such as anti-lock brakes, anti-theft features, and air bags make a car less expensive to insure.

Slow Down. Traffic violations – most commonly, speeding tickets – aren’t worth the costs. For example, a reckless driving ticket can cause your monthly car insurance bill to double, if not more.

Even worse, a driving ticket remains on your record for several years, making you pay long after the ticket is written.

If you are tempted to go far above the speed limit, ask yourself: is getting to my destination a few minutes faster worth going to court, paying a huge fine, and having to pay a larger car insurance bill next month?

Avoid Accidents. Of course accidents happen. You can’t stop accidents from happening altogether, but you can prevent them.

Don’t drive when you are tired or agitated, because you won’t be able to concentrate on the road. Avoid driving at night and during nasty weather. If you are traveling to an unfamiliar area, make sure you have superior directions or someone to guide you around. Bottom line: always stay alert, be patient, and use good judgment.

Watch Teenagers' Driving Behavior. The driving mistakes common to teenagers and college-aged students can cause your bills to skyrocket – especially in households with two, three, or even more young adults.

If you have young drivers in your household, talk to them about car insurance. Make sure they understand that accidents and violations raise car insurance rates.

A good rule of thumb: tell young drivers that if their behavior causes increased rates that they will have to pay the difference.

Take a course on safe driving. The National Safety Council, www.nsc.org, lists locations and availability of safe driving courses around the country. Check with your car insurance company about your options, and if taking a course near you will help you save.

Many courses are available for teenagers who have just begun driving, or older drivers who may need refreshing on modern technology or tips on controlling road rage. Aside from the insurance savings for completing these courses, they may help avoid the car accidents and tickets that cause car insurance rates to go up.

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