To: LIFESTYLES EDITORS
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Tips from the Insurance Information Institute on how to cut auto insurance costs by hundreds of dollars a year
NEW YORK, Dec. 3 /PRNewswire/ — The Insurance Information Institute says there are five things consumers can do to cut auto insurance costs. But it is important to evaluate each one to be sure it will work for you.
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Motorists are required to carry liability protection which will pay for damages you cause to another person or their property. But other coverages are optional, such as collision: which will repair or replace your car if you are in an accident; and comprehensive coverage, which will reimburse you if your car is stolen. Both collision and comprehensive coverage are sold with a deductible — the amount of money you pay out-of-pocket, before your insurance kicks in.
5 Tips on How to Save
1. Consider raising your deductible (going from $250 to $1000 couldsave you between 15 percent and 20 percent). Because you will need
your own cash on hand if you have a car accident, this tip only
works if you have enough money available to cover the deductible;
2. If you have an older car, consider dropping optional coverages
like collision and comprehensive. It’s not cost effective to have
too much coverage on an older car and that action could save you
anywhere from 10 percent to 40 percent on your annual premium
depending on the make and model of the car.
3. Drivers with good driving records often get the best premiums, so
be a safe driver.
4. Your credit rating may affect what you pay for insurance so
maintain good credit. Data shows that drivers with long, stable
credit records have fewer accidents than drivers who have poor
5. Ask your insurance company about discounts. Many companies offer
discounts for those who are safe drivers, good students, retired,
in college, etc.
You can also save hundreds of dollars by shopping around. Compare prices but also look into the financial health of the company and find out if it is customer friendly.
About the Insurance Information Institute
I.I.I. is an educational, fact finding and communications organization funded by the property/casualty insurance industry to explain what insurance is and how it works. Each year, the I.I.I. works on more than 3,700 news stories, handles more than 6,000 requests for information and answers nearly 50,000 questions from consumers. www.iii.org
SOURCE Insurance Information Institute
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