THE RIGHT AUTO INSURANCE - How to get it?

It’s easy to lower your auto insurance premiums by hundreds of dollars if you shop around, get all the discounts you deserve, and know a few key strategies that can cut your costs even further. Several large insurers are in the midst of changing the way they set rates, which makes it a particularly good time to check out your auto insurance options:
■ Compare rates from several auto insurance companies. The price range can be huge for the exact same person, and the insurer that offers your neighbor the best rate may actually be the most expensive one for you. Shop around online, through an agent, directly through a few companies, and see if your state insurance department has price comparisons, too. Only switch insurers, though, if you can cut your costs significantly. Otherwise, you may lose a valuable claims-free or long-term customer discount and be more likely to get punished if you have a ticket or an accident.
■ Improve your credit score, which now makes a big difference in your auto insurance rate. Order your free credit reports at www.AnnualCreditReport.com and fix any errors. Check out your insurance score at www. ChoiceTrust.com and your credit score at www.MyFico.com, which also includes helpful tips for improving the number.
■ Raise your deductible to at least $1,000 for comprehensive and collision coverage, or drop that coverage entirely if your car is only worth a few thousand dollars. Boost your liability coverage to at least $100,000 per person/$250,000 per accident/^ 100,000 for property damage, limit medical payments coverage to $1,000 to $5,000, and make sure you get credit for all of the discounts you deserve. Check out your car’s safety rating before you buy.
■ A few key moves can cut your teenager’s rate in half. Keep your child on your own policy, pair him with a safe car, and only make him an occasional driver, raise deductibles as high as you can (or drop comprehensive and collision coverage entirely if it’s an inexpensive car), sign up for driver’s education or any special programs the insurer offers to improve kids’ driving and lower rates, make sure he maintains good grades, have everyone in the household be particularly careful to avoid accidents and tickets when you have a teenage driver (which can boost the rates for everyone), and let the insurance company know if he moves more than 100 miles away for college and doesn’t take his car.
■ If you apply a low down payment when you buy your car, extend your loan over five years or more, and have a car that depreciates quickly, then your insurance may not be enough to pay off your loan if you total your car. In that case, consider buying inexpensive “gap coverage” that can make up the difference for a few years.
■ Don’t drop your coverage entirely if you won’t be driving for a while. Insurers typically boost rates or make it tough to get new coverage if you’ve gone for a while without insurance. Either drop everything but comprehensive coverage (if allowed in your state), which will cover your car if it’s stolen or damaged while in storage, or reduce your liability limits and raise your deductibles as high as they’ll go and see if you can get a low-mileage discount while you’re gone. If you sell your car, buy a nonowner policy, which will cover you if you borrow or rent a car, and can make it easier to start up new coverage when you start driving your own car again