Tips about Auto Insurance


Would you like some tips on how to reduce
the cost of your car insurance? Stay tuned, and I’ll give you four tips to make sure you
are getting the best deal on your auto insurance. Hello, I’m Therese Goldsmith, Insurance Commissioner
for the State of Maryland. The Maryland Insurance Administration is a state agency that you
can turn to if you have any questions about insurance. One of the questions that we frequently
receive is what a person can do to reduce their car insurance premiums. Here are some
tips. Tip #1: Discounts. First, ask your insurance company or representative about any available
discounts before purchasing or renewing your auto insurance policy. Not all insurers offer
the same discounts, but some of the most common discounts are for a good driving record, safety
devices in your car, such as anti-lock brakes, automatic safety belts or air bags and car
alarms and other anti-theft devices. And purchasing multiple policies from the same insurer, such
as automobile and homeowner’s policies or insuring more than one vehicle with the same
insurer. Some examples of other discounts your insurer may offer are for students who
maintain at least a B average, drivers who have completed a driver education course,
maintaining continuous coverage with the insurer for a certain number of years, or belonging
to certain organizations, such as credit unions, shopper’s clubs, or alumni associations. Tip
#2: Consider raising your deductible. Your deductible is the amount you agree to pay before your insurance company pays anything if your vehicle is damaged. If you choose
a higher deductible, you will pay more money out of pocket for any damage, but your insurance
premiums generally will be lower. Tip #3: Review your coverage. If your vehicle is older
and has been paid off, you may want to consider dropping comprehensive or collision coverage
to reduce your premium. It is important to realize though, that if you drop that coverage
and your vehicle is damaged in an accident that you cause or if it is stolen or vandalized
for example, you will be responsible to pay for repair or replacement costs. Tip #4: Shop
around. You can compare the premium you are paying now to what other companies might charge
by consulting a Maryland Insurance Administration publication called Automobile Insurance: A
Comparison Guide to Rates. Learn more by visiting our website or by calling us at 1-800-492-6116.
Thank you for watching.

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