Car Insurance Tips from the NAIC

There are thousands of car insurance articles on the internet, and the vast majority of them are recycled "tips" to lower your car insurance rates. Most of these tips are worthwhile, but since most car insurance articles are redundant, it makes searching for car insurance information very difficult. That's why carinsurancerates.com is so great - you can find all the information that you need right here!

But as for a few simple tips for saving on your car insurance, the majority of those internet articles are written by people who may or may not know what they're talking about. If you want real tips for saving, who better to turn to than the National Association of Insurance Commissioners (NAIC)?

The NAIC's Tips for Lowering Your Car Insurance Rates

First, the NAIC stresses the importance of comparison shopping. "Auto insurance is a highly competitive market," says Alessandro A. Iuppa, president of the NAIC. "Consumers should find a variety of companies vying for their business."

Secondly, the NAIC recommends that consumers seek multi-policy discounts. This can include insuring multiple cars with the same insurance agency, or even combining homeowner's or renter's insurance with an auto policy. Sometimes it is better to split your insurance across several agents or agencies, but you should always factor in the potential savings of a multi-policy discount.

Third, the NAIC advises all consumers to ask for discounts. There are a wide variety of discounts available, including discounts for cars equipped with various safety devices (automatic seatbelts, airbags, anti-lock brakes, etc.), as well as discounts based on age, profession, or scholastic performance. You may not be getting all of the discounts you're entitled to, so ask your agent!

Make Sure Your Deductible is Appropriate

The NAIC suggests that safe drivers consider increasing their deductibles as a way of lowering their car insurance rates. This can be risky, though, since in the event of an accident, higher deductibles mean more out of pocket costs for you. But for safe drivers, the savings on premiums are worth the risk.

The NAIC also warns the drivers of older cars that carrying low deductibles is usually not appropriate. In fact, it may be a good idea for these drivers to drop their collision and comprehensive coverages altogether! What's the point of insuring a $4,000 car for $5,000 worth of damage? If your car is totaled, you will only be given its replacement value by your car insurance company - regardless of how much you had it insured for.

Some Troubling Statistics from the NAIC

A 2006 study by the NAIC found that 15 percent of drivers did not have any car insurance whatsoever. This is up from 13 percent in 1999. Twenty percent of young singles said they would consider letting their car insurance lapse as a way of saving money. Clearly, these people are not aware of the dangers of driving without car insurance, which speaks to the poor job that the insurance industry is doing in educating consumers. Luckily, sites like carinsurancerates.com are here to fill the void. Browse around the site and learn as much as you can about car insurance - it is one of the largest expenses you will have over the course of your life, and it's one of the easiest to save money on. Use the site to comparison shop and find the best deal on the best policy for you. It's easy!