Car Insurance Rates

Finding the best rates: Comparing premiums is easier than ever, thanks to online services such as Quicken Insurance (www.quicken.com/insurance) and InsWeb (www.insweb.com). While you can also use the Yellow Pages to canvass local insurance agents for quotes, online services let you compare multiple price quotes in minutes. You should make this price comparison at least once a year. Still, it may not be a good idea to switch companies too often or arbitrarily. Sometimes loyalty pays. For instance, if you've been with one company several years and maintained a clean driving record, you may qualify for a safe-driver discount, which substantially lowers your premium. But if you're contemplating a switch, the new company may be willing to classify you as a safe driver. In addition, you can often get a discount for insuring more than one vehicle--or your home--with the same company. To get an accurate quote, you'll need to provide information on the car or cars that you intend to insure: the make, model, year, trim line, and the vehicle identification number (VIN). You'll also need to give the age, sex, and recent driving record of all potential drivers. Some companies may also ask where you normally park your car, and inquire about any aftermarket accessories you may have installed to prevent theft. The insurer may independently check your driving history using public documents such as police records, and your insurance history through your current and former insurers.

Money saving tips: Ask for the top tier. Insurers sort customers according to their likelihood of filing a claim, then assign them to one of several categories commonly referred to as tiers. Top-tier customers who have had few or no claims in the past several years and live in neighborhoods where auto-theft rates are low, for example, can easily save 15 percent or more off the standard rate. But simply because you qualify initially or improve your driving record doesn't mean you automatically get top-tier status.
Check rates before you buy a car. The difference in premiums between one car or truck and another can be substantial. Much of that has to do with the cost of repairing collision damage, which can vary greatly even among seemingly similar vehicles.
Get equipment discounts. You may qualify for extra discounts if your car has current safety equipment such as air bags or antilock brakes. Also check about anti-theft equipment such as an alarm system, which can get you a break on the comprehensive part of your coverage.
Group your policies. Most insurers will give you a multiple-policy price break if you let them write your auto, home, and personal-liability coverage.
Improve your driving skills. Completing a certified defensive-driving course can reduce your premium in some states.
Kid factors. If you have children who drive, you'll save if they get good grades or if they attend a school located more than 100 miles from your home and don't use the car there.
Group discounts. Insurers award discounts to low-risk consumers who share a common affiliation such as a membership in an employee group, a company pension fund, or an alumni association. These so-called affinity discounts can be sizable, so if they apply to you, it pays to take advantage of them. Ask your insurer if any groups to which you belong qualify for such a discount. Alternatively, ask representatives of the groups if they work with any insurance companies.
Keep repair options open. Some insurers insist you use generic replacement parts or encourage you to bring your vehicle to certain body shops in an effort to cut claims costs. While this arrangement may lower your premium, you may want to preserve your flexibility by insuring with a company that lets you decide which parts are used (original equipment or aftermarket copies), and who does the repairs. In tests a few years ago, we found none of the aftermarket replacement bumpers tested fit as well as factory-original bumpers or stood up as well to low-speed impacts. We also had trouble making generic fenders fit properly.