The price you pay for your auto insurance can vary by hundreds of dollars, depending what type of car you have and the insurance company you buy your policy from. Here are some ways to save money.

1. SHOP AROUND
Prices vary dramatically from company to company, so it pays to shop around. But, you don’t want to shop by price alone; select an insurance company that has a reputation for good customer service and is financially stable.

First put together a list of highly recommended auto insurance companies. Start by consulting friends, relatives or business associates—ask them if they have had an auto insurance claim and whether it was handled well. Remember, it is when you actually have to file a claim that you’ll really be using the product. Then check consumer publications and your state insurance department for customer satisfaction surveys and add any highly regarded auto insurance companies to the list. If you already have an insurance company you’re happy with for your home or business, find out if the company also sells auto insurance and add them to the list too.

Once you’ve compiled your list, you can check whether the companies on it are financially stable, through rating companies such as A.M. Best (www.ambest.com) and Standard & Poor’s (www.standardandpoors.com/ratings).

With your list of highly rated insurance companies in hand, it is time to start shopping. You should compare at least three companies, but looking into more may yield better savings. You can get prices online or contact the companies directly.

Get quotes from different types of insurance companies. Some sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several different insurance companies. Others do not use agents and sell directly to consumers over the phone or via the Internet. Pick the type of professional arrangement that suits your needs and comfort level. If you like to handle your finances on your computer at times that are convenient for you, you may prefer an insurance company that works in this manner. However, if you prefer to work with a person directly in person or over the phone, take this into account too.

Then carefully compare price and coverage. When shopping for insurance, it is important to be consistent in comparing the amount and type of insurance you are purchasing. And don’t be afraid to ask questions—it’s worth checking if an insurance company offers any special services, discounts or enhancements to the policies.

Your final selection should be based on price, coverage, special service and your overall comfort level with the company or person who will be providing the auto insurance for you. Remember, you will be contacting them during a crisis, such as an accident or a stolen vehicle, so you want to be sure you’re happy with the level of support they offer.

2. BEFORE YOU BUY A CAR, COMPARE INSURANCE COSTS
Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety (www.iihs.org).

3. ASK FOR HIGHER DEDUCTIBLES
Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

4. REDUCE COVERAGE ON OLDER CARS
Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Or you can look it up online at Kelley’s Blue Book (www.kbb.com). Review your coverage at renewal time to make sure your insurance needs haven’t changed.

5. BUY YOUR HOMEOWNERS AND AUTO COVERAGE FROM THE SAME INSURER
Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! You may save money buying from different insurance companies, compared with a multipolicy discount.

6. MAINTAIN A GOOD CREDIT RECORD
Establishing a solid credit history can cut your insurance costs. Most insurers use credit information to price auto insurance policies. Research shows that people who effectively manage their credit have fewer claims. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

7. TAKE ADVANTAGE OF LOW MILEAGE DISCOUNTS
Some companies offer discounts to motorists who drive a lower than average number of miles per year. Low mileage discounts can also apply to drivers who car pool to work.

8. ASK ABOUT GROUP INSURANCE
Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups or from other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible.

9. SEEK OUT OTHER DISCOUNTS
Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course or is away at college without a car, you may also qualify for a lower rate.

When you comparison shop, inquire about discounts for the following:*

Antitheft Devices
Auto and Homeowners Coverage with the Same Company
College Students away from Home
Defensive Driving Courses
Drivers Ed Courses
Good Credit Record
Higher deductibles
Low Annual Mileage
Long-Time Customer
More than 1 car
No Accidents in 3 Years
No Moving Violations in 3 Years
Student Drivers with Good Grades

*The discounts listed may not be available in all states or from all insurance companies.

The key to savings is not the discounts, but the final price. A company that offers few discounts may still have a lower overall price.

Source: Insurance Information Institute, “How Can I Save Money On Auto Insurance?”
iii.org website. Accessed May 29, 2014. http://www.iii.org/articles/how-can-i-save-money.html

© Copyright 2014 intouch Business, Inc. All rights reserved. Certain names and articles used with permission of owners. Trade names mentioned herein are owned by third parties.

The average yearly auto insurance premium is almost $800, but there is wide variation around this average. Many factors can affect your premium. Not all companies use all of these factors, and some might use factors not listed here. Your premium may depend on:

1. Your driving record.
The better your record, the lower your premium. If you have had accidents or serious traffic violations, it is likely you will pay more than if you have a clean driving record. You may also pay more if you are a new driver and have not been insured for a number of years.

2. How much you use your car.
The more miles you drive, the more chance for accidents. If you drive your car for work, or drive it a long distance to work, you will pay more. If you drive only occasionally—what some companies call “pleasure use”, you will pay less.

3. Where your car is parked and where you live.
Where you live and where the car is parked can affect the cost of your insurance. Generally, due to higher rates of vandalism, theft and accidents, urban drivers pay a higher auto insurance price than those in small towns or rural areas.

Other factors that vary from one area or state to another are: cost and frequency of litigation; medical care and car repair costs; prevalence of auto insurance fraud; and weather trends.

4. Your age.
In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. So insurers generally charge more if teenagers or young people below age 25 drive your car.

5. Your gender.
As a group, women tend to get into fewer accidents, have fewer driver-under-the-influence accidents (DUIs) and most importantly less serious accidents than men. So, all other things being equal, women generally pay less for auto insurance than men. Of course, over time individual driving history for both men and women will have a greater impact on what they pay for auto insurance.

6. The car you drive.
Some cars cost more to insure than others. Variables include the likelihood of theft, the cost of the car itself is major rate factor, the cost of repairs, and the overall safety record of the car. Engine sizes, even among the same makes and models, can also impact insurance premiums. Cars with high quality safety equipment might qualify for premium discounts.

Insurers not only look at how safe the car is to drive and how well it protects occupants, they also look at the potential damage a car can inflict on another car. If a specific car has a higher chance of inflicting damage on another car and its occupants, some insurers may charge more for liability insurance.

7. Your credit.
For many insurers, credit-based insurance scoring is one of the most important and statistically valid tools to predict the likelihood of a person filing a claim and the likely cost of that claim. Credit-based insurance scores are based on information like payment history, bankruptcies, collections, outstanding debt and length of credit history. For example, regular, on-time credit card and mortgage payments affect a score positively, while late payments affect a score negatively.

8. The type and amount of coverage.
In virtually every state, by law you must buy a minimum amount of liability insurance. The state required limits are generally very low and most people should consider purchasing much more than the state requirement—the recommended amount of liability protection is about ten times the average state minimum. If you have a new or recent model of car, you likely will also buy comprehensive and collision coverage, which pays for damage to your car due to weather, theft or physical damage to the car such as being hit by a tree. Comprehensive and collision coverages are subject to deductibles; the higher the deductible, the lower your auto insurance premium. While there is no legal requirement to purchase these coverages, if you finance the purchase of the car or you lease it you may be required by contract.

Source: Insurance Information Institute, “What Determines the Price of My Auto Insurance Policy?
iii.org website. Accessed May 29, 2014. http://www.iii.org/articles/what-determines-the-price-of-my-auto-insurance-policy.html

© Copyright 2014 intouch Business, Inc. All rights reserved. Certain names and articles used with permission of owners. Trade names mentioned herein are owned by third parties.

Paying for two separate policies on a monthly basis can be painful. If you’re looking to save money, combining auto insurance and homeowners insurance with a multi-insurance policy may lead to significant savings and a more manageable budget. Multiple policies, which usually combine auto insurance, homeowners insurance or other insurance policy types, may lower your monthly insurance bill by a significant amount. Many insurance companies provide discounts if you insure more than just car insurance with them. These insurers are able to secure more business through the same clients who, in exchange, receive discounts, in addition to convenience.

Since many multi policies can be combined onto one monthly bill, policyholders can have a streamlined process without having to repeat steps for each individual bill. In addition to the financial discounts, this will save them time, stress and even money on stamps.

© Copyright 2014 intouch Business, Inc. All rights reserved. Certain names and articles used with permission of owners. Trade names mentioned herein are owned by third parties.

Dear Valued Customer,

In this issue of the “————–” we focus on the benefits of combining your home and auto insurance.

Combining all of your policies with one insurance company can save you money compared to having a variety of carriers. And, when one company is handling all of your insurance policies, it also means less time spent sorting through and paying each policy. In short, your insurance rates and the time you spend managing them will be lowered if you combine insurance, plus, you will also have the convenience of having them all in one place.

Read on to further understand the benefits, find out what determines the price of your auto policy, how you can save even more on your auto insurance, and more.

We appreciate your continued business and look forward to serving you.

Kind regards,