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.

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It is adviseable to get multiple quotes.  Because insurance companies review each applicant individually, it’s important to keep in mind that just because a friend or neighbor is getting a good rate from one company, it may not be the best rate for you. Anyone who takes the time to review quotes from different insurance companies will soon understand that the quotes are wildly different, and will be happy that they spent time shopping around.

When comparison shopping for quotes, be sure to inquire about whatever applicable discounts are available for you. Some companies offer discounts on policies, so if the insured qualifies for some sort of discount, the insured can get a substantial reduction in the cost of the policy. Don’t worry if you live in a high-risk area; there are still policies available that can fit your budget.

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When making an addition to a policy such as adding a young driver, it isn’t always the most cost effective to simply add the child without considering other avenues and shopping around. Adding a teen to an parent’s insurance policy does not guarantee that the plan will still be a great deal once added.

The smart thing to do is compare different policies when looking for less costly coverage. Many parents will encourage their children to do well in their studies. It will often save money on coverage and also put a smile on a parent’s face.  If a student maintains a high GPA they may qualify for an insurance discount of up to 20%.

An excellent idea for teens which parents should support is the taking of a defensive driving class.  These classes give a teen the information they will need to be a safe driver, and usually insurance will be decreased after the class. While insurance coverage for a teenager may be costly, comparison shopping can minimize the impact.

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If you are not insured, anything of value that you own, including your house, your savings, part of your future wages, and other tangible assets, may be taken from you in order to pay for the losses. Automobile liability insurance is designed to protect you so that this doesn’t happen. Liability insurance also typically pays for an attorney to defend you against any legal claim or lawsuit that may be payable under the policy.  You can also buy extra insurance to cover any damages to your car.  This optional coverage will help pay for your losses whether or not you were the person at fault. If you have a loan against your car, this additional coverage may be required by your lender. 

Insurance is based on the theory that only a small percentage of all drivers will be involved in accidents. The premiums paid by all drivers during the course of a year are used to pay for the losses of those drivers who are involved in accidents. When you buy auto insurance, you receive financial protection in case you become involved in an accident. You also make sure that any other person injured through your fault will recover the losses that you cause.

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American Automobile Insurance

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If you don’t have insurance, anything of value that you own, including your home, savings,  future wages, and other assets, may be taken to pay for those losses. Auto liability insurance can help protect you so that this doesn’t happen. Liability insurance also pays for an attorney to
defend you against any claim or lawsuit that may be payable under the policy.

You can also buy insurance to cover damages to your auto. This optional coverage will help pay for your losses whether or not you were at fault. Insurance is based on the theory that only a small portion of all drivers will be involved in accidents. The premiums paid by all drivers during the year are used to pay for the losses of those drivers who have accidents. When you
buy insurance, you receive financial protection in case you become involved in an accident. You also make sure that a person injured through your fault will recover for losses you cause.

American Auto Insurance

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In fact, according to a study issued by the RAND Corporation, “While no-fault insurance was intended to lower the cost of compensating people involved in automobile accidents by taking most cases out of the court system, it actually increased costs because medical claims rose sharply instead”.

Source: http://www.insurancejournal.com/news/national/2010/03/02/107795.htm

No-fault insurance restricts the right to sue other drivers, receiving payments for pain and suffering or other similar damages that are non-economic and mandates that every driver be insured so that everyone involved in an accident can recover any economic losses directly from their own insurance company.  It was believed that this approach would reduce costs by minimizing litigation.   But because of increased medical costs these types of policies are actually proving to be more expensive. 

There is apparantly a greater tendency to uses specialized medical treatment because they were more likely to be covered and there is also evidence of greater inflation of medical costs in no fault states.  How this information will affect legislation in no-fault insurance states is yet to be seen.

American Auto Insurance

Additional Automotive Resources: Indianapolis Motor Speedway

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Here are a few things you can do to make sure you are getting the best rate possible as a young driver:

Lower Car Usage

If you drive less often you are less likely to get in an accident.  Because of this you represent less risk to the auto insurance company and can normally get a lower rate.  Make sure that the insurance company knows if you drive fewer miles than average.

Keep a Good Driving Record

You need to avoid traffic violations to get the best insurance rate as a young driver.  Make sure you to drive safely and obey traffic laws so that you don’t get tickets for speeding or causing accidents.  This will help keep your insurance rates down and avoid costly fines as well. If you are careful when you are driving and you drive less often, you should be able to keep a good driving record.

Keep Good Grades

Good grades are another way to get the best auto insurance rates if you are a young driver. Most auto insurance companies will give discounts to drivers that do well in school. Typically this requires that you have a “B” average or better. The individual insurance companies determine whether these discounts will apply for students who are high school or college, but again, this is something you need to make sure that the insurance company knows and is giving you credit for.

American Auto Insurance

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If you have other insurance policies, you may save on insurance by getting your multiple policies from the same company.  Many providers will give you a price break if you buy more than one policy through them (i.e. an auto policy and a homeowners policy).  Insuring more than one vehicle may also get you a discount.  I wouldn’t just assume that you are getting the best deal though.  In some cases you may actually save money by buying seperate policies from different insurance companies if you shop around.

Another helpful step you can take to get the best deal on auto insurance is maintaining a good credit record.  This may seem strange, but more and more American auto insurance companies are using credit information as a factor for consideration when it comes to determining insurance premiums.  That’s a good reason to pay your bills on time and keep your credit balances as low as possible.  You may also want to do an annual credit check and correct any errors you find.

If you drive fewer miles per year than most people because you work at home or carpool you may also be able to get a low mileage discount.  In some cases employers may have access to group rate discounts on insurance programs so you may want to check with your employer, or any other groups that you belong to, to see if they have any group coverage at a discounted rate.

Additional discounts you may be qualified for include: discounts for drivers that have a good record, meaning you have not had any accidents or moving violations in the recent past. People that participate in defensive driving courses and parents of driving age children that are good students may also qualify for additional discounts.

• Elect to accept a higher insurance deductable
• Drop Collision and Comprehensive insurance coverage for one or more vehicles
• Check on discounts for having multiple policies with the same insurance company
• Maintain a good credit record (seems strange but it’s true)
• Low mileage discounts
• Check with your employer if they have a group plan available
• Good driver discounts for drivers with a good driving record
• Discounts for completing defensive driving courses
• Good student discounts
• Discounts for students who are living away from home without a car

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Is it really a savings?

If you drive without insurance in Washington state, for instance, and you get caught the fine is more than $500.  If you don’t pay the fine then you could lose your license. That’s not the worst of it however.

If you are involved in an accident and find yourself without insurance, you could lose everything. In other words, driving uninsured could easily cost much more in the end.  It is a much better idea to find a way to afford it, even if it means trading down to a less expensive car or using mass transit instead.  You should also ask your insurance company for options to help you pay and price shop policies aggresively based on the suggestions given in this blog.

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