How can I save on auto insurance?
I know that I can’t drive legally without being insured, but auto insurance is a great expense. How can I save on it?
answer:
There are some companies that sell auto insurance more cheaply, and some policies that offer “special treatment” savings. You will simply have to shop widely to get the best possible rates for the coverage you need.
One source you might try is an insurance broker—but be sure to talk to two or three before you decide anything. Brokers not only know many different companies and policies well, but can also advise you on which kind of coverage gives you the most.
Another way of getting auto insurance at more reasonable prices is to deal with companies that don’t sell through agents. (You save on the big commissions agents get.)
Looking into policies that give special treatment to certain drivers is still another way to save. Among those who can often get reduced rates on insurance are drivers with good safety records, young people who have taken driver training courses in high school or college, and students with high grades.
To qualify for a safe driver policy, you must have, and keep, a near-perfect driving record. Your record is checked every 3 to 5 years—and this may cause problems for you. It has been found that rates can go up drastically under a safe driver policy as soon as you have an accident—even a minor one. Minor traffic convictions, too, can cause rates to shoot up out of all proportion to the offense. Insurance experts caution you to be extremely careful about buying a safe driver policy. After all, even the best of drivers scratch fenders once in a while, or get a speeding ticket. If such small mistakes cost you a fortune in increased insurance rates, it’s hardly worth it.