NDSU Extension Service - Ramsey County


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Car Insurance Dollars

Car Insurance Dollars


Car insurance rates continue to climb and can be a large part of your budget.  Fortunately, there are things that you can do reduce your car insurance premiums.  Some tips to reduce the cost of insuring a vehicle follow:

Consider insuring multiple drivers - Quotes for one vehicle are often higher than if you obtain a quote for insuring several drivers and/or vehicles with one company.  If you are bringing in more business, with only one account and payment schedule for insurance companies to handle, they will be willing to offer a discount.

Insure more than just your vehicle -Another type of discount some companies may provide is if you maintain other policies with the firm – for example homeowners, life insurance. Check with your insurance agent to see what is available and at what rates.

Watch your record-  In case you’ve forgotten, the more accidents or moving violations an individual has, the more he or she will tend to pay in terms of annual premiums.  All else being equal, more points on your driving record leads to higher insurance premiums.

Learn how to drive - Most insurance companies will provide a discount for drivers who complete an approved defensive driving course. Also in ND and some other states, a driver can reduce the number of points he or she has on his or her license by taking a defensive driving

Compare, compare - Shop around and obtain quotes from competing companies. Remember though that that cheap doesn't always mean good and going with the lower-priced company isn't always the wisest decision.

Which vehicle will you choose? – Insuring the latest, high octane vehicle will be much more costly than insuring a smaller, safer, lower-cost car. Also, older cars are often cheaper to insure than the latest model. Check with your agent/insurance company to determine rates to insure the different vehicles you're considering before making a purchase.

Raise your responsibility - Depending on the policy, deductibles typically range from $250 to $1,000. The catch is that, generally speaking, the lower the deductible, the higher the annual premium. Conversely, the higher the deductible is, the lower the premium. Ask your agent/insurance company how your premium might be affected if you raised your deductible.

Join a club – AAA membership will save you dollars on everything from restaurants to hotels to vehicle insurance.  Compare cost of the membership in similar clubs with the savings to see if one is a fit for you.

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