Rates for auto insurance are jumping faster than they have in a decade, the Wall Street Journal reported at the end of 2002. How can you get the right kind of coverage without paying a fortune?
One suggestion: when you buy collision and comprehensive insurance, choose a high deductible. Instead of a $100 deductible, choose a $500 or even a $1,000 deductible. That is, you’ll agree to pay for the first $500 or $1,000 worth of damage repairs before the insurance kicks in. Insurance salespeople may try to sell you on taking a low deductible, pointing out how much you’ve paid for the car and how important it is to have coverage every time you scratch the paint. However, your premiums will be much higher with a $100 deductible, rather than a $500 or $1,000 deductible. With a higher deductible you’ll save money and you’ll still be covered if you have a serious accident.
In any case, use a well-rated insurance company. You want to be confident the company will be able to pay its claims. Weiss Ratings is one firm that provides reliable ratings of auto insurers.
Moreover, you can tell a lot about an insurance company from the behavior of its agents. At a good company, the agents want to know whom they’re insuring. They won’t write a policy until they’ve interviewed you and the other drivers in the household. Some agents will even come by after they’ve written a policy, if your youngsters commit a minor traffic violation, to impress upon them the potential seriousness of such infractions.
