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Car
Insurance...Getting The Most For Your Money
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Does this sound familiar?
You've been a responsible
driver for many years, but you notice an upsetting pattern; every
year your car insurance premiums creep upward. What's going on?
What are you doing wrong? Well, the answer may be "nothing."
Remember that the cost of providing insurance, as it is with other
products and services, may increase for various reasons. Factors
that can affect car insurance premiums include the following:
- Your insurance company's
overall loss experience (due to a higher level of claims)
- The increased value
of newer model cars
- Increases in judgment
amounts awarded in auto lawsuits
- Increased business
processing and administrative expenses
What these items have
in common is that they're out of your control...so don't worry about
them. However, you do have some control over what happens with your
premiums. It may be time to step back and take a fresh look at your
car insurance.
How do I evaluate
my situation?
A good first step is
to gather your insurance records and any other car-related information.
Next, determine if circumstances have changed since you last dealt
with your coverage. Consider your cars or trucks, how they're now
used, who are the drivers and your driving experience. Once this
information is handy it's time to call your agent. What should you
discuss? Well, here are some areas to consider:
- If you have your
home and auto insurance with the same company, are you getting
a discount?
- Does my coverage
take full advantage of the discounts offered by my company?
- I have more than
one car; am I getting a credit?
- How much premium
can I save by changing deductibles? Determine the dollar amount
of any loss that you can comfortably handle as an out-of-pocket
expense.
- Do my cars really
need full coverage insurance? On an older car (over six years
old) you may want to drop collision and/or comprehensive coverage
and carry liability coverage only. Ask your agent what makes sense.
IMPORTANT: you must maintain these coverages if you're still paying
off a loan on your car or truck.
- Do lifestyle choices
such as drinking or smoking affect my premium?
- Does it matter that
my daughter made the Dean's List? Don't think this information
is bragging since your company may give discounts to young drivers
with good grades.
- Did you know that
my car has anti-lock brakes; airbag; theft alarm system? (Some
companies provide discounts for safety and anti-theft features)
- Did you know that
my son took Driver's Education?
- Does the company
have accurate information on how often and how far I drive?
- Am I with a standard
carrier or do I qualify for any preferred program?
- Is my vehicle charged
an additional premium because of its type or performance?
- Do I get a credit
for my driving/claims history or for how long I've been covered?
If applicable, find out if your company rewards a loss-free history
or longevity.
Communicating with
your agent
The best way to discuss
your insurance needs is to be open and honest with your agent. Giving
your agent accurate information puts him in the best position to
make certain that you get the best available premium. Carefully
answer your agent's questions and provide complete details about
any tickets, accidents, or violations in your driving history. This
approach also applies to information about who drives your cars
and how the cars are used. Finally, your agent is a terrific resource
for handling errors about your account or which may be shown in
your driver records. . . so use their expertise.
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