A couple of ways to save money on your auto insurance
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  1. #1

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    Default A couple of ways to save money on your auto insurance

    The quickest and best way to lower the cost of your auto insurance is by increasing the amount of the deductible on your collision and comprehensive coverage. For example, if you increase that deductible from $300-$500, you could reduce your costs by as much as 15% to 30%. Move up to a $1000 deductible and you might be able to save 40% or more.

    You should also think about your collision and comprehensive insurance before you buy that next car. The cost of this coverage is actually based on several factors, including the car's original cost, the cost to repair it, the likelihood of it being stolen, and its overall safety record. You can often get a discount from insurance companies if the car you're buying was designed to reduce the risk of theft or if it has a great safety record. How can you figure this out? The insurance Institute for Highway safety (iihs.org) has a website with information as to which cars offer the lowest risk of theft or the greatest safety.

    However, do not reduce your liability limits. While you might think it would be difficult to come up with a $1000 deductible payment, think what would happen if you were hit with a judgment for $250,000.

    Frugal Doug

  2. #2
    Registered User larabelle's Avatar
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    Thanks good information. I think I will look into increasing my deductable.
    Blessed and Highly Favored!!!!
    From $78K in debt to debt free and purchased a house and used car with 100% cash...God is sooo Good!!!

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    This didn't save me very much, but every little bit helps. Thanks!

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    Registered User itlw8's Avatar
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    we raised our deductible several years ago but we failed to put it in a savings account so now we will have to come up with it with this accident but it was still a wise thing to do. I will soon find out who was right about cancelling collision... we had a paid for 98 mini van he said cancel the collision I did not so we will see if we come out ahead or behind.

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    We raised our deductible to $1000 and our bill went from $2000/yr down to $1600/yr.

    Of course, it figures that this year was the first time in the last 10 years either of us has gotten into a car accident and was found at fault :-) So make sure that you have the $$$ in the bank if you do this (we do).

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    Registered User cissylu's Avatar
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    I agree better have those dollar`s in the bank.

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    It also helps to take a defensive driving course. I took a class online ($25.00) last year for insurance purposes. I submitted it to my insurance (USAA) and the discount will be good for three years on my policy.

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    Registered User nessarowdy's Avatar
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    So here's my question. Do you think it's wise to pay full coverage on a paid for 2002 Dodge van? I think it's value is fairly low, according to Kelly blue book values. The savings would be around $400 per year in doing this. What do you think?

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    Registered User mombottoo's Avatar
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    Quote Originally Posted by nessarowdy View Post
    So here's my question. Do you think it's wise to pay full coverage on a paid for 2002 Dodge van? I think it's value is fairly low, according to Kelly blue book values. The savings would be around $400 per year in doing this. What do you think?
    It depends on whether or not you can afford to replace the van out of pocket. In Michigan we have the option of limited collision, if it's available in your state you may want to check into that option. It's cheaper than full coverage, but a little more expensive than PL & PD.

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    Thanks folks

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    Lots of "it depends" with the questions, like the value of the vehicle, insurance rate, whether you can do work yourself or know someone that can do it cheaply, how good (or bad) of a driver you are (haha), and the drivers around you. I (**knock on wood**) haven't had an accident in 10 years of driving, so I bumped my deductibles up to $1K, as well as the deductible on my wife's car. Not a couple months later she totalled it.

    Couple other things that help somewhat are daytime running lights, anti-theft, and multi-car discounts.

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    Registered User Nishu's Avatar
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    If you guys do raise your deductible and find yourself in need of a new windshield, you'll probably have to pay for it completely out of pocket.

    If that happens, don't let the insurance company refer you to the autoglass company. USAA (my insurance company) told me when I tried to file a claim that "through a special agreement with safelite" they were able to offer me very low price on windshield replacement.

    I canceled my first appointment and called around for prices, and it turns out that very low price they were offering was about as high as I could have paid. I ended up going with Autoglass plus and the woman I spoke to told me that USAA actually outsources their windshield claims through someone else (possibly safelite?) and I can't remember how she described it, just that it was real shady and didn't benefit me at all.

    At that time I had forgotten that I had asked for that crazy high deductible, otherwise I wouldn't even have called them.

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    Quote Originally Posted by Frugal Doug View Post
    The quickest and best way to lower the cost of your auto insurance is by increasing the amount of the deductible on your collision and comprehensive coverage. For example, if you increase that deductible from $300-$500, you could reduce your costs by as much as 15% to 30%. Move up to a $1000 deductible and you might be able to save 40% or more.

    You should also think about your collision and comprehensive insurance before you buy that next car. The cost of this coverage is actually based on several factors, including the car's original cost, the cost to repair it, the likelihood of it being stolen, and its overall safety record. You can often get a discount from insurance companies if the car you're buying was designed to reduce the risk of theft or if it has a great safety record. How can you figure this out? The insurance Institute for Highway safety (iihs.org) has a website with information as to which cars offer the lowest risk of theft or the greatest safety.

    However, do not reduce your liability limits. While you might think it would be difficult to come up with a $1000 deductible payment, think what would happen if you were hit with a judgment for $250,000.

    Frugal Doug
    Doubt the judgement would mean much if you couldn't afford it. No one I know has even close to 250K.

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    Registered User Frugal Nurse's Avatar
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    Another way to save...
    AAA membership (I think that might have been mentioned)

    Having a public transportation pass. (whihc I have to travel to boston)

    Driving under 7000 miles a year or something like that.

    Not driving for a period of time? call the insurance comp for a deep reduction to have it sit in your drive- and NOT be driven. (we did that for when children went away to college and didn't need their cars)

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