5/29/09

NINE WAYS TO LOWER YOUR AUTO INSURANCE COSTS

You may not realize it, but the insurance rates you pay
for your car can vary dramatically depending on the insurance
company, agent or broker you choose, the coverages you request
and the kind of car you drive. Listed below are a number of
things you can do right now to lower your insurance costs.


1. COMPARISON SHOP.


Prices for the same coverage can vary by hundreds of
dollars, so it pays to shop around. Ask your friends, check the
yellow pages or call your state insurance department (phone
numbers are on back page). You can also check consumer guides,
insurance agents or companies. This will give you an idea of
price ranges and tell you which companies or agents have the
lowest prices. But don't shop price alone.


The insurer you select should offer both fair prices and
excellent service. Quality personal service may cost a bit
more, but provides added conveniences, so talk to a number of
insurers to get a feeling for the quality of their service. Ask
them what they would do to lower your costs. Check the
financial ratings of the companies too. Then, when you've
narrowed the field to three insurers, get price quotes.



2. ASK FOR HIGHER DEDUCTIBLES.


Deductibles represent the amount of money you pay before
you make a claim. By requesting higher deductibles on collision
and comprehensive (fire and theft) coverage, you can lower your
costs substantially. For example, increasing your deductible
from $200 to $500 could reduce your collision cost by 15% to
30%.


3. DROP COLLISION AND/OR COMPREHENSIVE COVERAGES ON OLDER
CARS.


It may not be cost-effective to have collision or
comprehensive coverages on cars worth less than $1000 because
any claim you make would not substantially exceed annual cost
and deductible amounts. Auto dealers and banks can tell you the
worth of cars.


4. ELIMINATE DUPLICATE MEDICAL COVERAGES.


If you have adequate health insurance, you may be paying
for duplicate medical coverage in your auto policy. In some
states, eliminating this coverage could lower your personal
injury protection (PIP) cost by up to 40%.


5. 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. Write to
the Insurance Institute for Highway Safety, 1005 North Glebe
Road, Arlington, VA 22201 and ask for the Highway Loss Data
Chart.


6. CONSIDER AREA INSURANCE COST IF YOU ARE MAKING A MOVE.


Costs tend to be lowest in rural communities and highest
in center cities where there is more traffic congestion.



7. TAKE ADVANTAGE Of LOW MILEAGE DISCOUNTS.


Some companies offer discounts to motorists who drive
fewer than a predetermined number of miles a year.


8. FIND OUT ABOUT AUTOMATIC SEAT BELT OR AIR BAG DISCOUNTS.


You may be able to take advantage of discounts on some
coverages if you have automatic seat belts and/or air bags.


9. INQUIRE ABOUT OTHER DISCOUNTS.


Some insurers offer discounts for more than one car, no
accidents in three years, drivers over 50 years of age, driver
training courses, anti-theft devices, anti-lock brakes and good
grades for students. See the following page for a guide to
these and other discounts.


INQUIRE ABOUT DISCOUNTS FOR:


COMPANY A COMPANY B COMPANY C

$500 deductible _______ _______ _______

$1,000 deductible _______ _______ _______

More than 1 car _______ _______ _______

No Accidents
in 3 Years _______ _______ _______

No Moving Violations
in 3 Years _______ _______ _______

Drivers Over 50 Years
of Age _______ _______ _______

Driver Training Course _______ _______ _______

Anti-Theft Device _______ _______ _______

Low Annual Mileage _______ _______ _______

Automatic Seat Belt _______ _______ _______

Air Bag _______ _______ _______

Anti-Lock Brakes _______ _______ _______

Good Grades for
Students _______ _______ _______

Auto and Homeowners
Coverage with the
Same Company _______ _______ _______

College Students
Away From Home
Without a Car _______ _______ _______


OTHER DISCOUNTS:


_______________ _______ _______ _______
_______________ _______ _______ _______
_______________ _______ _______ _______
_______________ _______ _______ _______

Motorcycle Insurance: What You Need to Know

You bought a new motorcycle and you're ready to hit the road. Right? Not so fast. You may think that safety gear is all you need to protect yourself, but if you don't know the basics of motorcycle insurance, you could injure your finances. (I know, I know, it's a terrible joke. But hey, I write for an insurance website, so cut me some slack!)


Why buy motorcycle insurance?
It's pretty simple. Motorcycle insurance is required by law in many states. Besides that, it can protect you from losing your house or life savings or both if you're responsible for causing personal injuries or property damage. It can also cover your medical bills, theft and damage from vandalism. And, if you have a loan or lease, the lender will usually make you buy coverage for the bike itself.

The big one: liability coverage
This is the legally required coverage most people think of when they talk about insurance. It breaks down into two categories:

* Bodily injury liability: Can pay for medical bills, pain and suffering, and loss of wages for people you kill or injure in an accident you cause. Sometimes you don't have to be completely at fault. Even if you're partially responsible for the accident, you might still have to pay.
* Property damage liability: Can pay for repairing or replacing the property of other people, like cars, telephone poles and so forth.

This coverage will also pay for your defense costs if you're sued because of an accident.

Consider buying more than the minimum amount of coverage required in your state. Why? Well, if you have a lot of assets to protect, you'll want to make sure you're protecting those assets. And if you don't have a lot of assets, how will you pay the bills?

Optional but important: protection for you
Although these coverages are usually optional, they all protect you and your property directly. Unless you're rich, take a good look at them.

* Uninsured/underinsured motorist (UM/UIM) coverage: Can cover expenses caused by other drivers with little (underinsured) or no (uninsured) auto insurance. It can cover things like your medical bills, lost wages and pain and suffering. It even protects your riders and other people covered by your policy while they're riding in/on other vehicles or when they're pedestrians.
* Medical payments coverage or personal injury protection (PIP): Can cover a small amount of medical or funeral expenses (or both) for you and your riders, in addition to other people covered by your policy while they're riding in/on other vehicles or when they're pedestrians.
* Comprehensive: Can pay for damage to your bike not related to an accident (e.g., fire, flood, vandalism, theft and animal collisions). Comprehensive is kind of a dumb name for it, since it's pretty cheap coverage that doesn't apply in all situations – but that's what they call it.
* Collision: Can pay to repair or replace your motorcycle if it's damaged in an accident. It doesn't matter who caused the accident – it could even be with a tree. Animals don't count, however. Why is hitting an animal not a collision? It just isn't. However, you can't buy collision without buying comprehensive, so you'll have coverage for animal accidents either way.

Even more coverage
These are some of the smaller and most-overlooked coverages, but they're all relatively cheap for the protection they provide. However, if you don't need them, they're a waste of money.

* Accessory coverage: Can pay for damage to or loss of accessories like modifications, custom paint, safety equipment (like motorcycle helmets), wheels and more.
* Roadside assistance: Can cover towing, minor repairs, and fuel delivery if your bike breaks down, gets stuck near the road or runs out of fluids.
* Rental coverage: Can cover the cost of renting a replacement motorcycle if yours is in an accident.
* Trailer coverage: Covers a trailer used to transport your bike.
* Trip interruption coverage: Covers expenses like food and lodging if your bike breaks down away from home.

And if I buy all that, I don't pay anything else?
If you believe that, you'll believe anything! There's no such thing as "full coverage." It's just something people say so they won't worry. Here's what you usually end up paying for:

* Deductibles: These are what you agree to pay yourself before your insurance takes over. You can choose different deductibles for different coverages. Liability coverage never has a deductible.
* Exclusions: These are situations your policy specifically mentions that it won't pay for. Examples include wear-and-tear and intentional acts. Racing is also excluded.
* Excess costs: Your policy lists a dollar amount for coverage limits. Anything over this amount won't come from your motorcycle insurance company.

Discounts and savings
Many motorcycle insurance discounts are similar to auto insurance discounts. These are some special ones for riders:

* Motorcycle safety training classes (bonus points if you're an instructor)
* Riders club membership
* Theft recovery systems (like LoJack®)

Comparison shopping: boring but useful
Motorcycle insurance quotes for the same coverage on the same bike can be different from each company. If you're getting insurance for the first time or think you're paying too much, it pays to check prices. Just make sure you're comparing the same coverage and make sure the company has a good financial strength rating.