5 ways to save on your car insurance

Your car doesn’t just cost you money at the gas pump. The folks at Insure.com, a Web site that allows you to get quotes on all types of insurance from various companies, say what you don’t realize about your car insurance policy also may hurt your pocketbook. Here are a few tips for saving from Insure.com.

1. How much rates go up with claims varies: When an insurance company decides to raise your premiums because you make a claim, it doesn’t follow any concrete rules. If you make a claim and have a birthday before renewal time, your age might bump you into a higher-risk category along with the claim. Meanwhile, some insurance companies have “accident forgiveness” guidelines, which would cut you a little slack. Ask your provider how to qualify when you renew your policy.

2. If your odometer isn’t always churning, you should look for “usage-based” car insurance: It allows you to buy coverage based on how much you actually drive. If you don’t drive much, this can save you up to 60 percent on your insurance. Progressive is the first insurance company to offer “pay-as-you-drive” policies through its MyRate program. Your mileage will be measured by a wireless device installed in a car port. If your insurance company doesn’t offer usage-based coverage, inquire about “low-mileage discounts.”

3. A bad credit history can hurt you: Car insurers believe that your credit history indicates whether you are going to make a claim, and will price your insurance policy accordingly where states allow it. Don’t forget to cancel your old policy if you switch insurers: Cancel coverage at any time by notifying the company in writing of your intended date of termination. Most consumers assume that if they decide to terminate the policy at the end of the coverage period, they can simply ignore the bill. Insurance companies don’t see it that way. They will send you another bill for the next premium payment, and when you don’t pay it, the company can cancel you for nonpayment, which goes on your credit record. (See credit history tip above.)

4. Try not to pay in installments if possible: “Fractional premium” fees are usually charged when you divide your annual premium payment into installments rather than paying for a year all at once. It can be as little as a few dollars per payment, but the more you break it down, the more it adds up. When you apply for the policy, ask what the fees are for paying in installments.

5. When car shopping, run your choices by your insurer: Auto insurers have a premium-rating system for every car model, usually based on “Vehicle Series Ratings” received from the Insurance Services Office (ISO). This rating indicates how comparatively expensive your vehicle should be to insure. Factors include susceptibility to theft and typical claims losses for the vehicle. Consider insurance rates when deciding on that new automobile.

Source : timeunions.com

by Tracy Ormsbee, Senior Editor/Features

wrote by Jennifer Gish