Wednesday, December 10, 2008

Hints for Saving on American Auto Insurance

By Thomas Kielez

In the United States their are many different auto insurance providers and providers may even have different policies or coverage levels so you can save a lot of money by comparing different companies and different policies. To get information from different auto insurance providers you can usually reach them by phone or on the internet. You can also find valuable information about different companies at the Insurance Department at your State capital.

As in other countries, American auto insurance has been developed to protect drivers from a financial loss or liability if they are involved in an accident. Coverage is also available to cover the loss of a car from theft. The first thing to focus on when comparing different insurance providers is their financial stability. You don't want to count on a company that has a poor financial rating. There are several sources of financial information on insurance companies. Standard & Poor's and A.M. Best are two of the more well know insurance ratings companies.

Insurance companies in America may market their policies directly to the customer online or over the phone. Some even have branches scattered throughout the United States with employees or agents that represent them exclusively. There are also independent agents that act as brokers for several insurance companies and can give you comparison information for each provider.

Besides price, you will also want to consider other factors. Does the company you are considering offer good service, answer your questions clearly and have a good reputation for satisfying claims. You may be able to get information about specific companies by checking with the State Insurance Department. It can also be helpful to ask friends and neighbors about their experience with different companies and get referrals for the companies they liked the best.

There are many strategies you can use to save on your auto insurance rates. A common approach is to raise the deductible, which is the amount you are willing to pay out of pocket. The higher the deductible the lower the rate you will pay because there is less chance the insurer will have to pay a claim. Just make sure you set the deductible at an amount you can handle if you have a problem.

Another way to save on car insurance is by dropping collision and comprehensive coverage on older vehicles that are paid off. A good rule of thumb is that if the vehicle is worth less than 10 times the premium you should consider dropping full coverage and switch to a more limited policy.

You may be able to save on insurance by getting multiple policies from the same company. Many insurance providers give a price break if you buy multiple policies (i.e. auto insurance and homeowners insurance). Insuring multiple vehicles may also get you a discount. I wouldn't take this for granted though. You may save money buying from different insurance companies, compared to a multi-policy discount if you shop around.

Maintaining a good credit record is also helpful in getting the best deal on auto insurance. More and more, American auto insurance companies are using credit information as a factor in determining insurance premiums. That is one more reason to pay your bills in a timely manner and keep your credit account balances as low as you can. You may also want to check your credit record annually and correct any errors as soon as possible.

If you drive less than most people because you work at home or carpool you may be able to get a low mileage discount from some companies. You may also want to check with your employer or any groups that you belong to see if they have any group plan available at a discounted rate.

If you have been with an insurance company for a long time and have a good driving record take a minute to check with them and find out if they have a discount for long term customers. If you have a young driver on your policy check on any good student discounts they offer. If your young driver is away from home at college without access to a car they may also qualify for a discount.

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