How to reduce your rates

How to reduce your rates

Here are several options for saving money on auto insurance while making sure that 

you have adequate coverage:

Shop around

Each insurance company has unique financial 

goals and costs. As a result, it isn’t uncommon 

to find rate differences between companies 

for the exact same coverage. The cheapest 

insurance may not provide you with the degree 

of coverage you need. It is a good idea to discuss 

your coverage with your agent or insurance 

company.

Select the right car

The type of auto you own has a direct influence 

on your insurance costs. Before you buy an 

auto, check with your agent or broker to find 

out how much it will cost to insure.

Select higher deductibles

The amount of the deductible you select will 

affect your auto rate. For example, you may 

save money by increasing your collision and 

comprehensive deductibles from $100 to $500.

To help keep your premiums down, you may 

want to think about paying for smaller claims 

yourself and using your insurance to only pay 

for larger claims.

Special discounts

Ask each agent or company if they offer special 

discounts. They often offer discounts to young 

drivers who are good students or who have 

completed a driver’s education course. Many ompanies will give you a discount on your 

auto premiums if you also insure your house 

through the same company. 

Insurance companies are required by state law 

to give discounts to seniors, age 55 and older, 

who complete safe driving courses.

Eliminate duplication

Your coverage may overlap in some areas, such 

as medical, collision, and uninsured motorist 

property damage. Ask your agent or broker to 

explain your coverage and advise you if you are 

duplicating coverage.

Buying collision/comprehensive 

coverage

If you don’t think you could afford to fix 

your car yourself if it was involved in an 

accident, you may want to carry collision and 

comprehensive coverage. These coverages 

protect owners of expensive and late-model 

autos against the cost of repairs. Though 

coverage may increase your rates, you may want 

to think about it if the difference in what you 

pay would exceed your ability to pay the repair 

bills. Your lender may require these coverages 

until you’ve paid off your car.