The U.S. Consumer Information Center recommends nine ways to save money on your auto insurance.
Recent Washington Post articles about auto insurance.
Many of these links will take you to Insurance News Network.
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Don't Get Run Over By Your Auto Insurance
By Bill Frischling
WashingtonPost.com Staff
July 11, 1996
Auto insurance takes an average of $740 from every car owner's pocket every year. It's necessary, but that's no reason to pay more for it. How do you pay less for your car insurance? We're glad you asked. Read on.
All states require, in some form, automobile insurance. Each states sets a different minimum level of liability that a driver must have in order to drive. However, the minimum levels are rarely enough to protect a family's assets in the event of a serious accident.
A variety of factors beyond your control, including your age and home address, impact your insurance rate. A table of national insurance rates, from the Insurance News Network, shows the disparity between insurance costs from state to state. More specific information for Virginia and Maryland is available.
One factor you can control is the type of car you drive. Insurance companies track different makes and models of cars that are frequently stolen or more likely to get into an accident and adjust their premiums accordingly. In some cases, the type of car you purchase could increase your annual insurance costs by $1,000 or more. You can avoid this by shopping for a safer car, which will help reduce your overall insurance costs. If you already own a car, you can find out whether your car is an above- or below-average risk by checking how it ranks on the Highway Loss Data Institute's ranking of cars in the United States. Also, State Farm Insurance maintains a list of cars for which it either discounts or marks up its insurance premiums. This list could be used as a baseline when analyzing your car's risk factor.
Before getting or renewing car insurance, remember to shop around for the best rates. The average car insurance policy in 1994 was $740. You wouldn't plunk down $740 for a television without researching it, would you?
Top 10 Cities for Auto Thefts
1. Miami, Fla.
2. New York, N.Y.
3. Fresno, Calif.
4. Jersey City, N.J.
5. Memphis, Tenn.
6. Phoenix-Mesa, Ariz.
7. Jackson, Miss.
8. Stockton-Lodi, Calif.
9. Los Angeles, Calif.
10. Sacramento, Calif.
· 10 Most Stolen Cars
· Car Theft Rate by City
Source: National Insurance Crime Bureau, State Farm Insurance
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The U.S. Consumer Information Center offers nine suggestions that can help you reduce the costs of your car insurance.
The fine print of any insurance contract can mean the difference between paying a tiny deductible or having to eat the cost of a wrecked car. Learn how to read the fine print.
Insurance is meant to be just that, a financial hedge against something that you hope never occurs. But one in two cars get into some sort of accident every year. Should that happen, you should be prepared to file a claim with your insurance company. Both the Insurance Information Institute and Insurance News Network maintain excellent guides that will help you both prepare and navigate the sometimes confusing process of filing a claim with your insurance company.
Links in this story
(in order of appearance, not including boxed links)
- Minimum Levels of Required Auto Liability Insurance, from Insurance News Network. A list of the 50 states and the District of Columbia and the minimum liability amount required by the individual state.
- Auto Insurance Rates: What's It Going to Cost? , from Insurance News Network. A description of how insurance companies figure their rates. Links are included on the page.
- Average Annual Auto Premiums, from Insurance News Network. A table listing average premiums, by state, from 1992 to 1994.
- General insurance information for Virginia, from Insurance News Network. Statistics for the state, an FAQ for Virginia auto insurance and sample rate information specific to different cities and counties in the state.
- Maryland Auto Insurance Rate Guides, from Insurance News Network. Statistics for the state, and sample rate information specific to different cities and counties in the state.
- Shopping for a Safer Car, from the Insurance Institute for Highway Safety. Detailed information on different automotive safety features and how they help make cars safer.
- Injury, Collision & Theft Losses, from the Highway Loss Data Institute. Ratings for most cars sold in the United States compared to the national average. Indicates if a car is more or less likely to cause an injury, be in an accident or be stolen.
- Insurance Rates for 1996 Auto Models, from State Farm Insurance. A list of cars that receive either insurance discounts or mark ups from State Farm Insurance.
- Nine Ways to Lower Your Auto Insurance Costs, from the U.S. Consumer Information Center. Tips gleaned from the Insurance Information Institute on how to find the best deal on your auto insurance.
- New Ways To Cut Car Insurance Costs, by Jane Bryant Quinn. This article originally appeared on Sept. 24, 1995 in The Washington Post.
- Auto Insurance Basics, from Insurance News Network. A description of different items on an auto insurance policy, what they mean and how they affect you.
- How To File An Insurance Claim, from the Insurance Information Institute. Advises you on what you should know about your insurance policy and steps to follow at the scene of an accident and after an accident if you need to file an insurance claim.
- Auto Insurance Claims: The Process, The Policy, The Payments, from Insurance News Network. A briefer synopsis of what to do when you file a claim, with a section on how insurance companies pay out a claim.
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