Connecticut BBB Explains How to Reduce the Cost of your Automobile Insurance

Aug. 3, 2010 - PRLog -- An ongoing deluge of ads suggests buying automobile insurance is as simple as going online or dialing a telephone number. However, with so many companies offering different types of policies, many consumers find the selection process cumbersome to the extent that they don’t comparison shop and end up paying for coverage they may not need.

Several factors influence the cost of auto insurance, ranging from the model and year of your car to the number of moving violations on record. The single greatest element in determining how much your premiums will cost is your level of coverage, so it is important to carefully consider your options.

Discounts offered by insurers can reduce premiums, such as “safe driving” rewards that lower the deductible for accident-free drivers.  Agents may not volunteer this information so you may want to ask if you qualify for any such programs.

The more you understand what impacts auto insurance premiums, the more you can control their cost.

Combined policies
Many insurers will reduce car premiums if you purchase other products with them, such as homeowner’s or life insurance.  But it is generally good advice to not switch carriers unless rates for the policies are competitive.

High performance vehicles = higher premiums
Expensive cars cost more to repair and therefore, may cost two or three times more to insure than less expensive vehicles.

Safety gear saves money
An approved car alarm or other devices that deter thieves can result in savings of five to ten percent.  Driver and passenger-side airbags reduce injuries and medical costs and may qualify you for a discount.

Avoid tickets to avoid higher premiums
Multiple traffic violations for speeding or other moving infractions tell insurance companies that you are a risky driver, but if you don’t have any insurance claims or traffic tickets for 36 months, you may qualify for a discounted insurance rate.  Drivers over 50 years old with a clean driving record also may be entitled to a reduction.

Adding teenage drivers to your policy will increase your premium, however, if you have more than one vehicle (and your insurance company allows it), add the teenager as the occasional driver of your least expensive car and make sure he or she drives only that vehicle.

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Founded in 1928, Connecticut BBB is an unbiased non-profit organization that sets and upholds high standards for fair and honest business behavior. For more advice on finding companies and businesses, start your search with trust at www.bbb.org.