Tips to finding better auto insurance rates.
Auto insurance prices, along with almost everything else, are going up and most people are getting more and more upset about it.
In an exclusive poll conducted via Toluna.com, more than half the people surveyed said auto insurance rates were too high. Only 28.2 percent of respondents said rates were about right. Barely 18 percent said they thought they had a “great deal” with their current auto insurance policy.
But, auto insurance rates are going up in the United States. For example, in Florida, numbers show that auto insurance premiums for drivers with no accidents or violations on their records increased by 58 percent in the city of Orlando from 2008 to 2010. Similar statistics are being seen, and felt by policyholders, in many other parts of the country.
Of course, the cost of insurance will depend on a number of factors such as region, age, type of car (the more expensive a car, the higher the insurance rate), etc. These could also include how many miles a year you drive, marital status, driving record, credit history, and more.
SIX TIPS TO FIND LOWER RATES
But there are ways to get a better deal. Here are a number of tips.
1. COMPARE: Auto insurance rates in a state are not the same. Premiums are different for the same policies, depending on what factors an insurer chooses to emphasize in its rate formula. Many states have a state insurance department with a Web site for comparative information on insurers in your state.
2. BUNDLING: Many insurance companies are encouraging consumers to “bundle” their various insurances coverage, like home and car. You can get discounts for bundling your insurance with a single insurer.
3. DEDUCTIBLES: A deductible is the part of the bill you pay out-of-pocket be-fore insurance kicks in. The higher deductible you accept, the lower your premiums will be..
4. DEVICES THAT MONITOR DRIVING: Insurers are starting to offer some new high-tech devices. Some block the use of cell phones in a moving car. Insurers are also starting to introduce “telematic” devices, which, once installed on a vehicle, collect data about your driving habits. You get a discount for agreeing to use one, and your rates are based on your driving habits. People who drive less and drive slower might have lower rates than people who drive a lot at high speeds, for example. Such devices are available from several insurers and are allowed in most states. Insurance companies say the devices are used only for discounts, not for raising premiums.
5. DISCOUNTS: Make sure you’re getting all the discounts you’re entitled to – for driving low miles every year, for example. A teen driver can get a discount if he or she has good grades, for example.
6. SHOP AROUND: There are many options of where to buy car insurance. Shop around and find your best price. Online sites make it very easy. And of course, the old-fashioned way – working with a local insurance agent – can work well too.
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Published in: Personal Finance