Prices of American auto insurance vary from one provider to the next, so money can be saved by shopping around. You can call American auto insurance companies directly or access much of the information online. Each State’s insurance department may also provide comparisons of prices charged by major American auto insurance providers.
American auto insurance is designed to protect the insured financially and provide peace of mind. When comparing American auto insurance providers it is important to pick an American auto insurance company that is financially stable. You can check the financial health of American auto insurance companies with different rating companies such as A.M. Best and Standard & Poor’s. You can also consult consumer magazines for information about American auto insurance providers.
Get quotes from different types of American auto insurance companies. Some sell through their own branch agencies. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several American auto insurance companies. Others do not use agents. They sell directly to consumers online and over the phone.
Price is not the only factor you should consider. Get recommendations from friends and relatives and check with your state insurance department to find out whether they provide information on consumer complaints for specific American auto insurance companies. You’ll want to choose an agent or company representative that takes the time to answer your questions.
Before You Buy a Car, Compare Auto Insurance Costs
Before buying a car, check into the insurance costs. American auto insurance premiums are based in part on the car’s value, potential repair costs, the cars overall safety record, and the chances of it being stolen. Many American auto insurance companies offer discounts for features that reduce the risk of theft or injuries such as daytime running lights and anti-theft devices. Information is available from the Insurance Institute for Highway Safety
Reduce the Cost of American Auto Insurance with Higher Deductibles
By requesting higher deductibles, you can lower your auto insurance costs substantially. Deductibles are what you pay before your auto insurance policy kicks in. For example, increasing your deductible from $250 to $500 could reduce your collision and comprehensive insurance coverage cost by 15-30%. Going to a $1,000 deductible may save you as much as 40%. Just be sure you have enough money set aside if you have a claim.
Reduce Coverage on Older Cars
You may want to consider dropping collision and/or comprehensive coverage on older vehicles. If your car is worth less than the premium multiplied by ten, the coverage may not be cost effective. Review your auto insurance coverage at renewal time to make sure your needs haven’t changed.
Buy Multiple Policies from the Same Insurer
Many American auto insurance companies will give you a price break if you buy two or more types of insurance (such as homeowners insurance or renters insurance). You may also get a discount if you have more than one car insured with the same company. Some American auto insurance companies reduce the rates for long-time customers. Don’t take this for granted though. If you shop around you may save money buying from different insurance companies, compared with a multi-policy discount.
Maintain a Good Credit Record
Believe is or not, keeping a solid credit history can cut your insurance costs. American auto insurance providers are increasingly using credit information to determine the price of auto insurance policies. So protect your credit by paying your bills on time, avoid unnecessary credit and keep your credit balances as low as possible. It is also a good idea to check your credit record regularly and have any errors corrected promptly so that your record remains accurate.
Low Mileage Discounts
Some American auto insurance companies offer discounts to motorists that drive a lower than average number of miles a year. These discounts can also apply to drivers who car pool to work.
Group Insurance Discounts
Some American auto insurance companies offer reductions to drivers who get insurance through a group plan with their employers or through professional, business and alumni groups, or other associations. Check with your employer and inquire with groups or clubs you are a member of to see if this is possible.
Check for Other Discounts
Some American auto insurance companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on your policy who is a good student, has taken a drivers education course or is at a college out of the area without a car, you may also qualify for a lower rate.
Check out our other articles to learn more about American Auto Insurance.
