Car Insurance Tips

There comes a time in most of our lives when we are struck with the issue of choosing insurance coverage for our vehicle(s). Here are some tips to keep in mind when pondering the issue:

1-If the car is more than 10 years old, consider only liability insurance. This covers damages you may cause to other vehicles and/or property of others. You may also have liability coverage only if there is no lien (ie the vehicle is paid for) on the vehicle.

2-Ask your insurance agent if they give a special rate reduction for individuals who aren't living in your household full time, such as a military person stationed overseas (without a personal vehicle) or a student away at college without a vehicle. Many times they do, but this information is not readily supplied to those customers looking to save some extra money (but, then again, who isn't??).

3-Some insurance companies offer special discounts if you are a member of certain organizations. And, many times you can join the organization even if you don't actively participate. For example, Nationwide insurance has an affiliation with the Farm Bureau (in some states, not all). You can join the Farm Bureau (usually requires an annual fee to the Farm Bureau) and in turn receive additional savings on your auto (and possibly) home insurance.

4-Try to insure as many things with the same company as possible. Most companies offer hefty discounts if you insure your home and auto(s) together, and you may be eligible for even deeper discounts if you have other lines of insurance with them as well (life, inland marine, business, etc).

5-Ask if your insurance company offers a "Good Student" discount for students who keep a certain grade point average. Many times this savings is in the area of 20%!

6-If you have AAA (or other similar service) consider removing the towing and/or rental coverages on your insurance policy. No use to pay for something twice when you can only get the service once per incident.

7-Don't be afraid to shop around. Though loyalty pays (in some cases), it doesn't hurt to call around to check other insurance companies prices. When doing so, just be sure you are getting a quote for the exact same coverage that you currently have (it's best to have your current policy in front of you when doing this). Otherwise, it might be too good to be true, and not benefit you in the long run.

8-Compare your new policy to your old one when it's time for renewal. It has been known for computers to make mistakes and create changes in a policy without the owner requesting them. This is also a good time to make sure that you still have all the discounts listed that you are eligible for.

9-If you have a question, ASK! Call your agent to get clarification. That's what they are getting paid for--to provide you a service.

10-Most of the time, a local agent is easier to work with than a company you deal with only via phone/internet. You can physically go to the office to ask your questions, make a payment or file a claim rather than pressing buttons trying to reach a live person to take your information.