05/2017 KIPLINGER’S PERSONAL FINANCE 43ISTOCKPHOTO.COM
spike, and some insurers
penalize you after a single
accident or speeding ticket.
But other companies may
raise rates more gently
when your teen starts to
drive, or they may overlook
that accident.
Follow these six steps to
save money on your insur-
ance without compromising
valuable coverage. Keep in
mind that insurers typically
cut you a break of 5% to
20% for bundling your auto
policy with homeowners or
other types of coverage, soget quotes for separate
policies as well as for your
whole panoply of insurance.- Assess your coverage.
Before you start shopping,
study your renewal notice
to find out how much cover-
age you already have so you
can compare new policies
with the same limits. Also
make sure you have the
right amount of insurance.
“The biggest mistake I see is
underpaying for uninsured
motorist coverage,” says
Spencer Houldin, president
of Ericson Insurance Advi-
sors, in Washington Depot,
Conn. He usually recom-
mends a half-million dollars
in coverage—far more than
many states’ minimums.
(For more recommenda-
tions, see “70 Ways to Build
Wealth,” April.) For a more
accurate quote, know your
vehicle’s safety features,
how many miles you drive
each year, your claims his-
tory, and information about
accidents or moving viola-
tions you’ve had within the
past five years. You can find
a checklist of details needed
to finalize a quote at www
.insurance.com.- Start shopping. Begin at
your state insurance depart-
ment’s website (find a link
at http://www.naic.org/stateweb
map.htm). Most states have
consumer guides with gen-
eral advice on how to shop
for policies and trim premi-
ums, and some states have
a pricing report or rate-
comparison table. Find the
driver profile that is most
like you, and choose the
six or so companies with
the lowest prices, says
Bob Hunter, director of
insurance for the Consumer
Federation of America, who
follows this method himself
when reshopping his auto
coverage. Before you start
calling insurers, look up
the complaint ratio for each
company (see step 3) and
discard the two with the
highest complaint ratios.
Call the remaining four, and
request quotes for identical
coverage.
Cover your bases by
comparing rates from in-
surers at Insurance.com
or InsuranceQuotes.com.
SHOPPING AROUND FOR AUTO
insurance may not be your
idea of fun, but comparing
prices for a new policy
every few years—or even
more often—can pay off big.
Premiums for two people
in the same zip code with
the same driving record can
differ by a thousand dollars
or more. The reason: Com-
panies weigh risk factors or
black marks on your record
differently. For example,
adding a teen driver or mov-
ing to a new part of the city
can cause your premiums toCut Car Insurance Rates
FAMILY FINANCESFollow our six-step plan to reshop your policy. You could save
hundreds of dollars a year. BY MIRIAM CROSS