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Automobile insurance rates vary widely depending on the insurance company you or your agent select,
the types and amounts of coverage you buy, the kind of car and driving record you have.
These are some things you can do to lower your insurance costs:
- Shop around—Incredibly, the Arizona Department of Insurance has reported
data that reveal that a family's auto-insurance rates can vary by more than 400 percent for identical
coverage, depending on the company selected. Contact the nearest office of the Insurance Department,
in Phoenix or Tucson, and request a copy of the current pamphlet that reports comparative rate
information for 50 or more of the largest insurance companies doing business in Arizona. As you
search for the best rate, this pamphlet can be an invaluable tool in narrowing the field.
You also should request and review the companion pamphlet that reports total consumer complaints
filed with the department. Regardless of rates, don't select an insurance firm with a poor reputation
for service.
- Consider higher deductibles—By increasing your deductibles on collision
and comprehensive (fire and theft) coverage to $200 or even $500, you will reduce your premiums.
- Refuse some non-mandatory coverages—If you have very good medical insurance,
you may wish to consider eliminating medical payments coverage on your auto policy. If your car
has little value, it may not make sense to carry any collision or comprehensive insurance.
- Take advantage of discounts—Ask your insurance agent about the availability
of discounts. These include multiple-car (more than one with the same company); multiple-policy
(for example, buy auto and homeowner's insurance from the same company); driver's education (both
students and adults); non-smoker's; anti-theft devices (auto-alarm systems and similar equipment);
passive restraints (air bags and seat belts); anti-lock brakes; low mileage; good driver (no recent
accidents or moving violations); good student; and mature driver (those older than age 50).
- Be a good driver—Moving violations, especially for DUI or reckless driving,
will cost you.
- Buy cars subject to lower rates—Before making a car purchase, check with
your insurance agent about models that are expensive to repair, subject to a higher risk of theft,
or have a high statistical rate of bodily injury claims.
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