How can I save money when buying a car?
Brett Stewart, Special to the Gazette
Thursday, May 14, 2009
Maintain good credit
Your credit rating may affect what you pay for insurance, so keep a close eye on it. Credit makes insurance rates more accurate, fair and objective. While the use of insurance scoring varies from state to state and company to company, it is a fact that drivers with long, stable credit records have fewer accidents than drivers who don't. There are various Internet services that allow you to check your credit rating and provide tips on how to improve your score.
Compare insurance costs
Before you buy a new or used car, check into insurance costs for that vehicle. Your premium is based in part on the car’s price, the cost to repair it, its overall safety record, and the likelihood of theft. Cars that are favorite targets for thieves cost more to insure. Information that can help you decide what car to buy is available from the Insurance Institute for Highway Safety http://www.iihs.org.
Higher deductibles
Your deductibles is the amount of money you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $250 to $500 could reduce your collision and comprehensive coverage cost by 15 percent to 30 percent.
Buy homeowners and auto coverage
Most insurers will give you a discount if you buy two or more types of insurance from them. Also you may get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce premiums for long-time customers.
Inquire about discounts
You may get a break on your insurance if you are over 50 or in some cases 55 and retired or if there is a young driver on the policy who is a good student.
When you comparison shop, inquire about discounts for:
• Auto and homeowners coverage with the same company.
• Continuous coverage with same company.
• Multiple vehicles on the same policy.
• Claim free for 3 years.
• Conviction free for 3 years.
• Drivers over 50-55 years of age.
• Driver training or defensive driving course.
• Students with good grades.
• Life Insurance discount.
Homeowner’s coverage
Review policy limits and the value of your possessions annually.
You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need. Keep up to date with any new discounts or policy changes that you insurance company has announced recently.
Also don’t confuse what you paid for your house with replacement cost of your house. Make sure your homeowners coverage has kept up with inflation. If not you could be in for a big surprise if you need to file a claim.
Make a list of questions for your Agent and make sure you know what your policy covers:
• Is the deductible the same for wind/hail damage as any other covered perils?
• If my sewer backs up is it covered?
• What about jewelry other valuables?
• What about my big screen TV?
• What are the liability limits on my policy?