Making Smart Choices

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Making smart choices in the type and extent of auto insurance you select should start from the very beginning of vehicle ownership. Evaluating the type of insurance before shopping for your next car could have a tremendous effect on your bank account.

Safety and Value

Different vehicles have different levels of insurance costs. Take for instance the difference between a four-door sedan and a sports car. Or look at the difference between a minivan and a full-sized pickup truck. Also be aware that these categories can change. Case in point is the full-sized passenger-van category. Because these vehicles tend to carry up to 15 passengers, they receive higher insurance premiums. Some companies have even stopped writing policies on such vehicles. Just recently, two companies who dropped those policies have reinstituted their coverage, but only if the vehicle is equipped with an electronic stability control system.

Other safety equipment can lower your premiums. Features such as side airbags or curtains can help. Even anti-lock brakes can lower you premium. There are situations where you can upgrade your choice in vehicles and nearly save as much on your insurance to pay for the optional equipment.

Your age can be an advantage but, on the other hand, if you are a teenager or a senior citizen you may have to pay more. Non-smokers can save on their auto insurance. If you have multiple vehicles or your home is insured with the same company, you can save plenty.

Make Yourself Comfortable

Many companies today serve their policyholders only by telephone or on the Internet. Others have agents in nearly every small town in America. If you feel more comfortable dealing face-to-face with an agent this might be worth the extra few dollars it may cost. In some cases, having an advocate who knows your name and face can help when dealing with a difficult-to-solve situation. However, you may feel right at home dealing with the company representative over the telephone or by sending emails to and fro. Most importantly: make sure you are comfortable with your choice before you make one.

When you start comparing actual policies and their costs, keep in mind that you can save substantially by selecting a higher deductible or perhaps lowering the dollar limit of a particular coverage.

The Long Road

How you use your vehicle can have a major influence on your premium. If you use your vehicle to commute to and from work, your premium may be higher than if you use mass transit for commuting to work and only use your car for personal use.

The amount of miles you drive each year has an impact on your insurance costs. Many insurance companies increase the premium on a vehicle that is driven more than the national average, between 12,000 and 15,000 miles. Using your vehicle for work or in your business could have a dramatic effect on your costs. These mileage penalties are in place because of the odds of you having an incident increases as your odometer ticks off more miles.

These are all conditions you would be wise to check on before you make your choice in insurance companies. Remember, research, research, and research.