How to save on auto insurance?

[ChefGirl]

Do you guys have collision coverage? If so, what's your deductible? I currently have liabilities insurance (250/500/100) and collision $500 ded. My uninsured coverage is 100/300/100. I'm thinking about increasing collsion deductible or just drop it to save on my annual premiums....just curious to see what you guys are doing with your auto insurance.

thanks.

[HonoluluMom]

As far as collision coverage, it really depends on the age of the car and whether you own it outright. If you have an older car and it is involved in a collision, the repairs may cost more than what the car is worth so that collision coverage may not make sense to have. If your car is being financed (i.e., owned by the bank), your lender may require that you have collision coverage.

If you increase your deductibles, just be sure you have the money saved up in case you need to tap into coverage.

[BillK]

Hit and Runs are also Collision losses in lots of states states. It sucks to tell someone they have a $1000 Deductible to pay if their car is hit and run.

[ChefGirl]

Hit and Runs are also Collision losses in lots of states states. It sucks to tell someone they have a $1000 Deductible to pay if their car is hit and run.

good point...I will check with our agent.

[kbud]

Shop around. I change insurance companies almost once a year. It's amazing how much you can save that way. Just before to compare the same limits/coverage w/each company. I go through AAA. You can get quotes on-line in a few minutes. I did just last month and w/in minutes had about 7 quotes from different companies AAA does business with. One was about $150 lower than my current renewal. I called AAA 800 and w/in minutes had all the paperwork done. Super easy. I check rates about once a year and anytime there is a significant increase.

[BillK]

Shop around. I change insurance companies almost once a year. It's amazing how much you can save that way. Just before to compare the same limits/coverage w/each company. I go through AAA. You can get quotes on-line in a few minutes. I did just last month and w/in minutes had about 7 quotes from different companies AAA does business with. One was about $150 lower than my current renewal. I called AAA 800 and w/in minutes had all the paperwork done. Super easy. I check rates about once a year and anytime there is a significant increase.
Just remember - if you have an at fault claim and have only been with a company for a short time you're a lot more likely to be non-renewed. Then when you go to get a new carrier - being non-renewed is a big deal and you'll be looking at a much higher rate than the $150/year savings got you. We have lots of companies at my office and even though we CAN move folks around from company to company - we tend to avoid doing it unless we fully explain to them the risks of doing so - and they still want to make the change. My staff is good about monitoring renewals as they come in - if there's a BIG change in premium we'll proactively contact the client and ask them if they want us to look around for them - but there are risks with making a change so frequently.

Some other ways to possibly save some money w/o switching companies is asking if they offer an EFT discount (some of my companies offer a 5% discount just for agreeing to go EFT), owning a home (not even having it insured with them - just owning a home and showing them proof you have coverage elsewhere), verify your to/from work (usage) is correct, possibly switching your homeowners to the same company as your auto for a package discount, if you only have 1 car and your spouse has a company car for business and personal use then ask if they offer a multi-car discount (LOTS of companies do - just need some proof from the employer the spouse has the company car), verify you're rated in the right territory (county/township etc) as that can make a big difference, Association discounts (like GMAC will give a discount if you have a GM card or a GM car loan etc).

[n2ou]

Bill, Can you move to AZ and become my insurance guy?

[BillK]

lol! PA is enough for me. Thought about a non-resident OH and WV license but it's stupid expensive for how little I'd write in those states.

[kbud]

Just remember - if you have an at fault claim and have only been with a company for a short time you're a lot more likely to be non-renewed. Then when you go to get a new carrier - being non-renewed is a big deal and you'll be looking at a much higher rate than the $150/year savings got you. We have lots of companies at my office and even though we CAN move folks around from company to company - we tend to avoid doing it unless we fully explain to them the risks of doing so - and they still want to make the change. My staff is good about monitoring renewals as they come in - if there's a BIG change in premium we'll proactively contact the client and ask them if they want us to look around for them - but there are risks with making a change so frequently.

Some other ways to possibly save some money w/o switching companies is asking if they offer an EFT discount (some of my companies offer a 5% discount just for agreeing to go EFT), owning a home (not even having it insured with them - just owning a home and showing them proof you have coverage elsewhere), verify your to/from work (usage) is correct, possibly switching your homeowners to the same company as your auto for a package discount, if you only have 1 car and your spouse has a company car for business and personal use then ask if they offer a multi-car discount (LOTS of companies do - just need some proof from the employer the spouse has the company car), verify you're rated in the right territory (county/township etc) as that can make a big difference, Association discounts (like GMAC will give a discount if you have a GM card or a GM car loan etc).

That's interesting. I can say that I've done this for over 10 years w/no problems. Of course we've never had an at-fault claim. I'm usually w/an insurer for a year or 2. My savings were $150 for the 6 month premium.

[BillK]

That's interesting. I can say that I've done this for over 10 years w/no problems. Of course we've never had an at-fault claim. I'm usually w/an insurer for a year or 2. My savings were $150 for the 6 month premium.
There's nothing wrong with it if it's worked for you. We have clients that demand we look around every single renewal and move them even it's only a few bucks - and we do - it's their choice. Just saying what "could" happen. I've seen it happen and no one ever seems to recall our conversation about the risks of jumping from company to company when they get that non-renewal notice in the mail is all. I'm always the bad guy then. :)

[tmahanes]

Just think.... your insurance could be $5000 a year for liability only!!!!! That is what my FIL pays for MIL, himself and 21 y/o BIL and 18 y/o BIL. I can only imagine how much it will be since BIL wrecked AGAIN this month!