You made some important choices about your new car. Now you need to make some equally important choices about your auto insurance. If you want the right coverage, without paying too much, here are some things to think about.

Auto Insurance Cost-Cutters To Save You Money

Buy A Low Profile Car

Before you buy a new or used car, check into insurance costs. Cars that are expensive to repair or that are favorite targets for thieves have much higher insurance costs.

Not surprisingly, the more expensive the car, the more expensive the insurance. Cars that thieves love—Porsches, Jaguars, BMWs and sports models in general—are more costly to insure. The latest study shows that it costs three to four times as much to insure a Porsche as a Ford. If you buy a used car, insurance will be significantly lower.

Tip: Call your insurance company or agent before buying a car and ask about the costs for several different models.

Avoid Duplicate Medical Coverage

If you have an adequate comprehensive health insurance plan, you should consider dropping the of medical expense coverage from your auto insurance policy. This could lower your premium by up to 40%.

Maximize Discounts

Most insurance companies will reduce premiums 10% to 20% for some or all of these situations. However, you may have to bring up the subject with your agent.

• Automatic seat belts and air bags
• Anti-lock brakes
• Insuring more than one car
• No accidents in three years
• No accidents ever
• Drivers over 50 years of age
• Driver training courses
• Anti-theft devices
• Good grades for students
• Low mileage discounts
• Insuring your home or apartment with the same company
• College student living at least 100 miles away from home without a car on campus
• Not smoking
• Not drinking
• Serving in the armed forces (past or present)
• Car pooling
• Ignition cutoff system and/or a hood or wheel-locking device
• Being a doctor, lawyer, farmer, or member of a profession that the insurance company regards as a good risk
• Being female and the only driver in the household
• Renewing for longer than a year

Collect All Of The Benefits You're Entitled To

Here are some tips for making sure that you obtain a fair settlement and obtain payment on a claim as quickly as possible.

• Start a file on the accident immediately. Put into it hospital bills, police accident reports, and copies of claims you have submitted.
• Where practical, write a follow up letter summarizing any phone conversations with an insurance company representative. Include the date of the conversation and the name of the person spoken to. Put a copy of the letter in the file.
• If it is taking a long time to obtain your settlement, check your policy to see whether interim rental car expenses are covered. If so, rent a car. The insurer will be motivated to speed things along to avoid incurring this cost.
• If you feel the company is being unreasonable—is delaying or not acting in good faith—make a complaint to your state’s insurance regulator.
• If you are getting nowhere, and the claim is substantial, consider consulting an attorney.

Use Car Repair Networks

The Direct Repair Program, or DRP, is a type of "managed care" approach to getting your car repaired, available from many major insurers. The idea behind DRP's is that they will save insurers money by cutting car rental periods for loaners, by eliminating the need for adjusters and by taking advantage of discounts on parts and labor. Some of these savings should be passed on to you. In some cases, insurers have been known to take up to 20% off premiums for collision/damage coverage.

Whether most people will save much with a DRP is unclear. However, if you have a busy schedule, the DRP’s advantage is that it will certainly save you time. In addition, it can take the stress out of filing a claim.

Tip: Insurers seldom advertise their DRP's, so you will have to ask. Then get a list of repair shops near you. Skip the plan if you have to travel too far to an approved garage.

The DRP plan lets you choose between using a prescreened network of repair shops or your own mechanic. The repair shops participating in the network have already negotiated agreements with the insurance company. Use one of them and the insurance company will cover all costs except the deductible. Without this program, the old rules apply: you get the best estimate and then hope your insurer will pay.

The great advantage is that you do not have to shop for estimates because the garage is authorized by the insurer to do the repairs. Some even loan you a car while repairs are being done. And, because you do not have to wait for a claims adjuster, you will probably get your car back sooner. Sometimes the garage or the insurer also guarantees the repairs for as long as you own the car.

Before signing up for a DRP, get answers to these questions:

• Will I get a break on my premiums or a lower deductible on collision?
• Are eligible repair shops nearby?
• What if I have an accident while traveling out of state?
• For how long is the repair work guaranteed?
• Will I get a free loaner while repairs are done?

Drive Carefully And Take Your Car Key

Finally, at the risk of being obvious, drive carefully. Accidents can greatly increase your premiums as well as cause the insurance company to refuse to renew (or, in serious cases, to cancel) your policy. And don't forget to take your car key when leaving your car: a car is stolen every 19 seconds in the U.S. and over 20% have the key in the ignition.

Auto Information Checklist

When calling insurers to request price quotes, this checklist of information will come in handy.

© CPA Site Solutions

You made some important choices about your new car. Now you need to make some equally important choices about your auto insurance. If you want the right coverage, without paying too much, here are some things to think about.

Auto Insurance Cost-Cutters To Save You Money

Buy A Low Profile Car

Before you buy a new or used car, check into insurance costs. Cars that are expensive to repair or that are favorite targets for thieves have much higher insurance costs.

Not surprisingly, the more expensive the car, the more expensive the insurance. Cars that thieves love—Porsches, Jaguars, BMWs and sports models in general—are more costly to insure. The latest study shows that it costs three to four times as much to insure a Porsche as a Ford. If you buy a used car, insurance will be significantly lower.

Tip: Call your insurance company or agent before buying a car and ask about the costs for several different models.

Avoid Duplicate Medical Coverage

If you have an adequate comprehensive health insurance plan, you should consider dropping the of medical expense coverage from your auto insurance policy. This could lower your premium by up to 40%.

Maximize Discounts

Most insurance companies will reduce premiums 10% to 20% for some or all of these situations. However, you may have to bring up the subject with your agent.

• Automatic seat belts and air bags
• Anti-lock brakes
• Insuring more than one car
• No accidents in three years
• No accidents ever
• Drivers over 50 years of age
• Driver training courses
• Anti-theft devices
• Good grades for students
• Low mileage discounts
• Insuring your home or apartment with the same company
• College student living at least 100 miles away from home without a car on campus
• Not smoking
• Not drinking
• Serving in the armed forces (past or present)
• Car pooling
• Ignition cutoff system and/or a hood or wheel-locking device
• Being a doctor, lawyer, farmer, or member of a profession that the insurance company regards as a good risk
• Being female and the only driver in the household
• Renewing for longer than a year

Collect All Of The Benefits You're Entitled To

Here are some tips for making sure that you obtain a fair settlement and obtain payment on a claim as quickly as possible.

• Start a file on the accident immediately. Put into it hospital bills, police accident reports, and copies of claims you have submitted.
• Where practical, write a follow up letter summarizing any phone conversations with an insurance company representative. Include the date of the conversation and the name of the person spoken to. Put a copy of the letter in the file.
• If it is taking a long time to obtain your settlement, check your policy to see whether interim rental car expenses are covered. If so, rent a car. The insurer will be motivated to speed things along to avoid incurring this cost.
• If you feel the company is being unreasonable—is delaying or not acting in good faith—make a complaint to your state’s insurance regulator.
• If you are getting nowhere, and the claim is substantial, consider consulting an attorney.

Use Car Repair Networks

The Direct Repair Program, or DRP, is a type of "managed care" approach to getting your car repaired, available from many major insurers. The idea behind DRP's is that they will save insurers money by cutting car rental periods for loaners, by eliminating the need for adjusters and by taking advantage of discounts on parts and labor. Some of these savings should be passed on to you. In some cases, insurers have been known to take up to 20% off premiums for collision/damage coverage.

Whether most people will save much with a DRP is unclear. However, if you have a busy schedule, the DRP’s advantage is that it will certainly save you time. In addition, it can take the stress out of filing a claim.

Tip: Insurers seldom advertise their DRP's, so you will have to ask. Then get a list of repair shops near you. Skip the plan if you have to travel too far to an approved garage.

The DRP plan lets you choose between using a prescreened network of repair shops or your own mechanic. The repair shops participating in the network have already negotiated agreements with the insurance company. Use one of them and the insurance company will cover all costs except the deductible. Without this program, the old rules apply: you get the best estimate and then hope your insurer will pay.

The great advantage is that you do not have to shop for estimates because the garage is authorized by the insurer to do the repairs. Some even loan you a car while repairs are being done. And, because you do not have to wait for a claims adjuster, you will probably get your car back sooner. Sometimes the garage or the insurer also guarantees the repairs for as long as you own the car.

Before signing up for a DRP, get answers to these questions:

• Will I get a break on my premiums or a lower deductible on collision?
• Are eligible repair shops nearby?
• What if I have an accident while traveling out of state?
• For how long is the repair work guaranteed?
• Will I get a free loaner while repairs are done?

Drive Carefully And Take Your Car Key

Finally, at the risk of being obvious, drive carefully. Accidents can greatly increase your premiums as well as cause the insurance company to refuse to renew (or, in serious cases, to cancel) your policy. And don't forget to take your car key when leaving your car: a car is stolen every 19 seconds in the U.S. and over 20% have the key in the ignition.

Auto Information Checklist

When calling insurers to request price quotes, this checklist of information will come in handy.

© CPA Site Solutions