Money Saving Wednesday…Auto Insurance

March 03, 2010 Comment

I have had several mention people mention the book “One Second After” as a great resource for information about what will happen after an EMP attack. Check it out.

I’m currently looking for new auto insurance. The plan is to get a few quotes and then to see if my current company will match them, after all I have been with the same company for 20 years. There are a few things I have learned as I have been looking around and a few things I have learned through experience.

First: If you have teen drivers. Don’t buy them a car. If your child is only an occasional driver you may not need to insure them at all, just like you do not insure me but if I drive your car and have an accident I am covered. Check out your policy to see if this is possible. All insurance companies offer a better rate for good grades so, kill two birds with one stone and get those grades up and driving privileges follow. There are also companies which will reduce your rate if your child watches a video or takes a short class and passes a simple test.

If you must purchase a car so they can get to school or a job purchase a clunker. They are cheaper it insure and you may be able to drop the collision insurance on that car (see below). Use this car to run errands yourself and list your student as a driver less than 50 % of the time, 75% is even better. If your child goes away to college check your policy. You may be able to reduce your rates if the school is in a lower risk area than the county you live in.

Second: Drop collision insurance. If you have an older car check the blue book value of the car. If the value is below or even slightly higher than your deductible drop the coverage. Insurance companies pay the lowest blue book value so if you car is worth $1,000 and your deductible is $1,000 you will not get a penny. If the deductible is $500 you may still want to consider this option as your insurance rate will go up after a claim. Get out a paper and pencil and do the math.

Third: Don’t file a claim unless you have lots of money coming back from the insurance company. Again, after you file a claim your rates will increase. Unfair, yes, but true.

Fourth: Ask your agent to walk you through EVERY discount they offer. Some offer discounts for teachers, law enforcement, military service and also low mileage drivers. If you work from home or have a commute that is only a few miles you will qualify.

Fifth: Shop around. Even Costco offers insurance policies now. Check with your employer, credit union, AAA, AARP, on line. There are so many choices out there now so have make, model and year for each of your cars, trucks, motorcycles, etc. ready and start shopping. Be sure you compare apples to apples, the same deductible, same collision coverage, same bodily injury, etc.

I bet you’ll find you can save money by taking a new look at your policy. If you know of a great buy feel free to share it with the rest of us. Good luck.

Watch for your Totally Ready Newsletter tomorrow! This month there are lots of great recipes, directions for cooking without electricity, storing foods safely and much more.

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