Auto insurance requirements vary from state to state. Check with your state insurance regulator to learn more about individual requirements as well as insurers you may be considering for the insurance policy.
To get the best coverage at the best price, get several quotes from insurance companies; it may save you hundreds of dollars every year. What can you do to reduce your insurance premiums?
Raise your deductible on collision and comprehensive coverage. If you own an older car, you might want to eliminate this coverage altogether. Don’t forget to take advantage of discounts available to you. For example, you may be eligible for a discount based on the number of miles you drive; your age; your good grades if you are a student; your driving record; or if you have taken a safe driving course. You may also be able to get discounts if you insure more than one vehicle, insure your vehicle and home with the same company, have anti-theft devices, or have safety features as air bags or anti-lock brake system.
For more information on automobile insurance costs go to www.naic.org; http://www.insure.com; and http://www.insweb.com
Discussion Questions
1. What can you do to reduce your automobile insurance costs?
2. Why better college grades result in reducing your automobile insurance costs?
Teaching Suggestions
You may want to use the information in this blog post and the websites to
* Have students research various types of discounts available to them.
* Research the make and model of vehicles that are most frequently stolen, consequently resulting in higher insurance rates.
Melissa Hart
Focus on Personal Finance, 7e 