Auto Insurance Policy Renewal Tips

When your auto insurance renewal policy arrives, don’t automatically sign up with your current auto insurer or you could lose out on some opportunities to save more money. HelpYourMoney has provided a list of free online services that will compare auto insurance rates online. Here are some other auto insurance renewal tips:

Questions to Ask Yourself:

1. Am I Saving as Much As I Can?

Increasing Your Comprehensive Deductible from $250 to $500 and collision from $500 to $1000 can reduce your auto insurance premium by 10% or more! Being that the average driver pays $939 a year for auto insurance and makes a claim once every 8 years you often can come out ahead by increasing your deductible a bit.

Check Out What Other Drivers in Your State Are Paying for Auto Insurance at naic.org (I have not figured out exactly where to find this info on naic.org so if you fiqure it out, please reply with a comment.

Fix Credit Errors which can raise your auto insurance premiums. Read Our Article on How to Get Your Free Annual Credit Report.

Drive Less. Carpooling or driving less miles per day may qualify you for a rate decrease.

2. Do I Have the Right Amount of Auto Coverage?

Minimum is not always optimum. Your states coverage floor may actually be to low. Pros suggest $100,000 per person, $300,00 per accident and $50,0000 for property damage. Carry the same amount in uninsured motorist coverage.

Drop Collision Coverage on that really old car worth around $2000 or less. You’ll pay as much in premium over a few years as you might pay to fix or replace the vehicle. Check out kbb.com to lookup the value of your used car.

3. Are the extras worth it or needless?

Accident Forgiveness Coverage is probably NOT worth it. You pay a higher premium but then your rates won’t go up if you have an accident. But paying more now to save more later does not add up! And some insurers forgive the first accident at now extra charge anyway (Allstate does after you have been a customer for 5 years).

New-Car replacement coverage is probably also NOT worth it. It will increase your premium and only goes into affect if you car is totaled. Here is another interested article on FoxNews.com about Insurance premiums and wether they are worth it or not.

4. Can I afford to Let My Children Drive?

Your auto policy may double or triple after adding a teenage child to your policy so shop around!

Children with good grades (usually B or better) can you get you a discount of up to 25% with some providers.

Wishing you the best rate possible on your next Auto Insurance Policy!
Tim Schroeder, HYM
Sources: Kate Ashford - Money Magazine March 06, FoxNews.