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| Credit Answers > Debt-Management-Articles-2009 > Saving Money on Auto Insurance |
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Car insurance is one of the most common bills that most households are required to pay. According to InsuranceUSA.com , an online
insurance marketplace, car insurance is the most widely purchased type of insurance coverage because automobile drivers are required to have car insurance almost everywhere. Below are some tips that may
help you save on this expense.
Consider Raising Your Deductible
A deductible is the amount of money that you have to pay out-of-pocket before the insurance company pays the claim. According to the web site of the Insurance Information Institute
(www.iii.org), increasing your deductible from $200 to $500 could reduce your collision and comprehensive by 15-30%. Opting for a $1,000 deductible can
save you approximately 40%. If you choose to do this, you should have the deductible on hand if you have a claim. InsuranceUSA.com defines comprehensive as insurance that "covers damages that are caused
to your vehicle through vandalism, natural cause, hit and run, or hitting an animal." Collision insurance "pertains to the coverage you receive for accidents, where you actually collide with or hit a
vehicle while you are driving."
Know The Value Of Your Vehicle
Some drivers choose to drop collision and/or comprehensive insurance once a car depreciates to a certain value. InsuranceUSA.com recommends dropping collision; also known as liability-only insurance, when
the market value of the vehicle is below $2,000. In the event of an accident, your insurance company will only pay what the cash value of the vehicle is at that time. If your car is worth less than your
deductible and your collision premium, you could be paying more for insurance than necessary. Realize that having liability-only coverage also means that the insurance company only pays for the damages
of the other parties involved if you are at fault. Damages for your car will not be covered.
To help you make a decision, visit Kelley Blue Book's web site at www.kbb.com to check the market value of your vehicle. Also, consult your insurance
company before dropping any coverage so you are complying with the laws in your state.
Drive Safely
Numerous at-fault claims and traffic violations may increase your insurance rates. You may help avoid the likelihood of an accident by driving defensively and obeying traffic laws. Stay safe by adhering
to road signs, driving the speed limit, and resisting the urge to talk on a cell phone while driving. Many insurance companies offer discounts if a policyholder has maintained a clean driving record for
a specific amount of time.
Take Advantage Of All Discounts
You may qualify for car insurance discounts for a variety of reasons. Mention to your insurance company if your vehicle has features such as air bags, anti-lock brakes, and anti-theft devices. Keep
track of how often you use your vehicle. If your mileage is lower than average, you may receive a discount. Younger drivers usually cost more to insure. Discounts may be available for student
drivers with good grades or college students in the household that live on campus for most of the year. Your insurance company may also offer you a multi-policy discount if you purchase both
auto and homeowners coverage.
What To Do In An Auto Accident
Here are some tips provided by Erie Insurance Group (www.erieinsurance.com) to help you remain calm and gather the necessary information in the
event of a car accident. A detailed and accurate report can help you expedite your claim for repair costs.
The first priority is to make sure your vehicle is safely off the road and check to see if any parties are injured. If so, contact emergency personnel immediately.
Always call the police even if there is minor vehicle damage. A police report can help speed up the claims process.
Although car accidents are stressful situations, remain calm and do not discuss who is at fault. You will have an opportunity to talk to your insurance agent about the details. Exchange information with
the other driver(s), which would include names, phone numbers, addresses, license plate numbers, and the make and model of each car.
You may also want to record information such as date, time, location, and weather conditions. Most cell phones come equipped with a camera, so consider taking picture at the scene. In case of an
accident, Erie recommends keeping a disposable camera along with a notepad in your glove box.
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