Car Insurance

Thing No. 1

Hike up the deductible. 

Paying a premium every month, year after year for the privilege of saving $500 on the deductible if and when you file a claim…is just mental.  You should have at least a $1,000 deductible.  That way you part with the cash if and when you need to and it goes straight to the bottom line of your repairs instead of into your broker’s kitchen remodel or wherever it is that overpaid premiums go.

Thing No. 2

Comparison shop online. 

There are a multitude of sites online that gather quotes from hundreds of companies: insurance.com or insure.com are a couple.  Progressive jumped into the game offering competitive quotes in addition to their own and now everybody’s doing it. Do review exactly what you’re getting though.  Although premiums vary widely for the identical coverage, different companies slice and dice things differently and package different “perks” together (like roadside assistance) so the coverage you get on those quotes will not necessarily be identical. We have no idea where you’ll get the best quote because each company is optimizing premiums for certain types of customers but gee whiz, we sure think that little gecko is cute.

Thing No. 3

Check out their rating. 

This shouldn’t be an issue with the majors but if you get a great quote from some wackadoo company you’ve never heard of, find out what their rating is (this is based on their “financial strength” i.e. ability to pay.)  These ratings are available from Standard & Poors but we like ambest.com.  You just type the name of the company in the box right on the home page and off you go.  You do have to register, but it’s free.

Thing No. 4

Dump the personal injury coverage. 

If you have good medical coverage already (through your employer for example) you don’t need duplicate coverage on your auto policy by the name of Personal Injury Protection (PIP).  This will save you dough on your premium.

Thing No. 5

Get all the discounts.

Make sure you’re getting any discounts that you are due including
•    Good driver (assuming you are one and can prove it by having a record clean of accidents or tickets in the past 3 years)
•    Anti-theft device
•    Low annual mileage (under 10,000)
•    Air Bags/Anti-Lock brakes
•    Garage Parking
•    Combined Policy (e.g. auto + homeowners)
•    Over 50 years old