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Show How to Buy Auto Insurance and Save Money! Paying high premiums? Checkthis list of tips and see whether you can’t reduce the cost of future coverage By STANLEY S. JACOBS AST YEAR the Bob Collins family of San Francisce paid $425 to insure its two cars. One was a new sedan used for business by Collins, a wholesale grocery salesman. The other was an aging station wagon used by Mrs. Collins and their 17-year-old son. Bob was transferred to Boston recently, and the family budget was dealt a staggering blow. He discovered that buying identical auto insurance in Boston (liability, collision, and “comprehensive” protection) would almost double his California quarterly premiums. “It’s unbelievable,” he told me. “How many motorists can aiford a financial bite like this?” His question is echoed in countless other households as the cost of auto insurance continues to soar. In just 12 years premiums have escalated 46 percent. This year Americans will pay out $10 billion for their auto policies, a record that will stand until next year’s premiums come due. What's behind these cost increases, and what can you, as 2 car owner, do to pare them? trom our frightful accidenttoll are the main reason for inexorable hikes in car-insurance premiums. This year 52,000 people will be killed in auto accidents, and more than four million will be injured. Insurance settlements come high these days. Jury awards for death or disability may reach $200,000 or more for a single accident. Underwriters must pass on the losses to the policyholders in the form of rate increases. Constantly rising mechanics’ charges or the “boosting” of repair estimates by unethical garage owners, coupled with higher medical and hospital fees, are other reasons. You also pay heavily for the carelessness of other drivers. In 1955, 219,000 vehicles were costs could be lowered proportionately. There are many ways, however, for you to lower the costs of your policy andstill have all the protection you probably will need. Almost anybody with a decent driving record, by shopping around forthe best value, can shave car-insurance costs by a minimum of 10 percent. That's because premiums sometimes vary from company to company and state to state. I talked with 15 insurance agents and culled these tips for saving money when it is time to renew your policy: Shop before you sign. Ask questions of insurance men. My neighbor saved 20 percent by taking out a policy with a nationally known company which has no salesmen and thus pays no commissions. This reduction in overhead is reflected in lower charges to policyholders. Be certain, however, that a company is known for prompt and fair claim service and financial responsibility. Also, be sure that the company you do business with is licensed in your state. Will your type of business save you money? Some companies offer special rates to clergymen, farmers, ranchers, commissioned military personnel, and to women over 30 who are the sole operators of the car. Check with your agent or broker to make sure that you are not erroneously charged with accidents or traffic violations. If you have an excelJent driving record for three years or longer, many companies will lower their collision and liability rates by as much as 15 to 20 percent. An accident or a conviction for a serioustraffic violation is a major factor in hiking your insurance premiums. Look into the “package policy.” Instead of taking out separate coverage on two cars, you may save 10 to 20 percent by combining protection for both autos into one policy. The company has less paper work, filing, and processing, so stolen. This year insurance companies will be their savings are passed on to you. billed for most of the estimated 600,000 stolen cars, paying out claims averaging $1,030 each. So simple a procedure as removing keys and locking doors and windows would thwart most thieves and reduce underwriters’ losses. Policy If you drive a compact car, ask your agent whether you are entitled to a discount. Some companiesoffer a discount of 15 percent or more on smaller vehicles. Be certain that your car is correctly classified. ILLUSTRATION BY DAVID PASCAL An auto driven principally for pleasure usually costs much less to insure than a vehicle used © daily in the course of your job. Reducing your annual mileage may also whittle down costs, for many companies charge less if you drive under 8,000 miles a year. If your son is under 25 and attends school more than 100 miles from home, you may be eligible for an additional discount. Some companies offer rate reductions if young drivers have completed courses in approved driver-training classes. See if you qualify for a tax deduction. You can save by taking a portion of your car-insurance cost as a tax deduction, provided you use the auto for business or philanthropic purposes part of the time. Consider eliminating coverage which may not be essential. If you agree to a $250 “deductible” on a new car (the insurer paysall repair costs above that sum), you may save as much as 75 percent of this expensive feature of yourpolicy. If your car is old, it is wiser to omit collision coverage completely. The money you would get back in case of a collision may not be much more than the premiums you paid out. Make sure you are not paying for unnecessary “medical payments” insurance. Since most families have individual medical and hospital policies which will cover them in case of injury, this feature of your policy might be superfluous because both cover you and your family in case of accident, no matter who is at fault. Elimination of this type of coverage might well save you a tidy sum of money. . Lastly, never skimp onliability coverage. This protects you from claims by other people, even \ guests in your own car, if you are involved in an accident and proved negligent. Many motorists confuse medical payments and liability insurance. Medical payments cover you and your family at all times; liability covers everyoneelse, if you are the cause of an accident. Play safe here: insure to the limit. In this day of huge jury awards, maximum liability protection will surely bring you peace of mind. Family Weekly, February 11, 1968 29 |