1. Low mileage discounts really help. You can opt for one if you use a lot of public transportation, work at home or simply drive less than 10,000 miles annually. Carpools also give you the possibility to discuss low mileage discounts with your insurance carrier.

2. Raise the deductibles to be paid. Increasing your deductible two times will result in an average 10% decrease in your annual rates, depending on your insurance carrier. Also, if you have an old vehicle, you might want to go without comprehensive and collision coverage in general, because it may be just unreasonably costly. But in that case be prepared to pay for the repair out of your pocket.

3. Hybrids help you save money. Some insurance carriers offer up to 10% discounts for driving a hybrid vehicle. Still, if you don’t feel like owning one of such cars yet, you may go with a safe profile car instead. Insurance companies issue report containing the safety rating of car makes and models, so it’s a good idea to think about.

4. Do not pay for coverage you don’t use. Dropping coverage types such as Roadside Assistance, Towing and Rental Car coverage will give you another possibility to save money. Especially, considering the fact that some insurance companies actually provide roadside assistance to their customers as part of the policy.

5. Check your credit report on a regular basis. Your credit rating is one of the elements that strongly influence the final premium you will pay. Keeping your credit record clean of bad debts and outdated payments will earn you a higher credit rating and will help you get a lower insurance premium.

6. Don’t lapse your insurance policy. Missing your annual policy payment is likely to cause its cancellation, and it will be much harder and more costly to get a new policy even with another provider as this will be noted in your report. In case you don’t have the money to pay your premium in full, ask your agent if a partial installment will prevent you from losing the policy. Continue reading →

It’s one of those sad facts of life that ageing is inevitable. Being philosophical about it – it’s going to happen so you might as well celebrate it. The question is how society should celebrate ageing. People who rely on driving to get them around while working, continue to need their vehicles when they retire. Let’s face it. In most US towns and cities, few people walk. Everyone drives. Fifty years ago, not many seniors drove around because life expectancy was a lot lower than it is today. Now more people own cars and, with more leisure time and better health, go out and about on the roads. This creates an interesting dilemma for states. Let’s take Massachusetts as an example. Back in 1977, the legislature decided to grant seniors a reward for living so long. Regardless of their driving records, everyone over the age of 65 was given a 25% discount on their insurance premiums. This encouraged the car culture. Seniors were thought safer drivers, so it was alright to let them drive rather than walk around. The price tab was picked up by all the other drivers. The cost of the discount was spread across the premiums for all the other insured groups.

So how has this worked out? All the statistics from 1977 to date prove the initial assumption. Drivers in the age range 65 to 74 have fewer accidents than any other group on the road. This is due to three factors: they tend to drive more slowly, they have more experience than everyone else and they tend to drive at off-peak times when the danger is less. Thus, that group deserves a discount. Whether it should be 25% is not the point. There is considerable social benefit in continuing to encourage mobility among seniors. They go out and spend money in the community. They stay fit and healthy and are less of a burden on the health care services. But drivers aged 75 and over lose their edge. The body is slowing down. Reflexes and eyesight are not what they were. Their claims record is second only to the age group up to 25. This is sparking a debate about whether the discount should be removed for the oldest drivers. Continue reading →