Smart ways to save on auto insurance

Across the country, people continue to look for ways to stretch their budgets and cut costs. But when trying to cut costs on auto insurance, consumers should be wary of making penny wise, pound foolish decisions that could put them at risk financially. Allstate is providing some helpful tips on auto insurance savings. Since insurance is designed to help protect consumers against the unknown, it can be difficult to know how much protection is needed. Allstate is providing some pointers for how to help keep protected while still saving money.

Good ideas: Slow down, buy the right car, pay your bill through automatic withdrawal, insure your car and property with the same company, and study hard. Things to think twice about: Your deductible, liability limits, uninsured motorist coverage, personal injury or medical payments coverage, and comprehensive coverage.

Five good ideas:

1. Slow down. Drivers who have had accidents or serious traffic violations usually pay more than those with clean driving records, so consider safe driving a financial investment. With Allstate's safe driving discount, safe drivers can save up to 20 percent.

2. Buy the right car. A car's value, age, safety record and repair costs, as well as the likelihood that it could get stolen, all help determine insurance premiums. Also, certain car features may generate insurance savings. For example:

• In most states, a car equipped with factory-installed anti-lock brakes can save you up to 10%, and airbags or motorized seatbelts could reduce your premium with Allstate by up to 30 percent.

• A brand-new, never-been-titled car could reduce your Allstate premium by 5-20 percent, depending on the state and model-year of a vehicle.

3. Pay your bill through automatic withdrawal. Many insurance companies offer payment choices through automatic withdrawal. In addition to the convenience, the Allstate® Easy Pay Plan offers automatic withdrawal from a person's account and may provide a discount of up to 5% on premium, depending on the state.

4. Insure your property and car with the same insurer. Drivers who have Allstate property insurance may qualify for lower auto insurance premiums by as much as 10%, and could also save on their property insurance, as well.

5. Study hard. In most states, full-time students who meet GPA requirements could save on auto insurance premiums with a discount of 10-20 percent.

Five things to think twice about:

1. Your deductible. The higher the deductible, the lower the premium; however, you should make sure you can afford to pay your deductible if you have an accident. Raising a deductible higher than you can afford could prevent you from being able to fully repair your car after an accident.

2. Your liability limits. If you're at fault in an accident, you could be held legally responsible for the medical and repair costs of others. Liability coverage can help protect policyholders from these potentially devastating expenses.

3. Uninsured motorist coverage. Uninsured motorist coverage can protect you if you are injured in an auto accident caused by someone with no insurance. A recent report by the Insurance Research Council predicts that the percentage of uninsured motorists will increase nationally from 13.8 in 2007 to 16.1 percent in 2010. Consumers should review their auto insurance policies to ensure they have the coverage amounts they need.

4. Personal injury or medical payments coverage. Accidents are never planned, but planning ahead with the right insurance coverage can make a huge difference following an accident with injury. Medical Payments coverage helps pay for medical treatment for accident-related injuries. Personal Injury Protection helps reimburse people for lost income, child care expenses, medical expenses, and other costs that may result from accident injuries. Check with your local agent to find out which of these coverages are offered in your state.

5. Comprehensive coverage. Comprehensive coverage helps protect cars in situations that don't necessarily involve other drivers or vehicles, such as damages from a storm or natural disaster, vandalism, or even a falling tree. Since policies typically cap coverage at the actual cash value of the car, the older your car is, the more you might consider dropping this coverage.

Auto Car insurance

Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.

Auto insurance protects the buyer from losses resulting from traffic accidents.

Public policy

In many jurisdictions it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the driver, however the degree of each varies greatly.
A 1994 study by Jeremy Jackson and Roger Blackman showed, consistent with the risk homeostasis theory, that increased accident costs caused large and significant reductions in accident frequencies.

Coverage levels
Vehicle insurance can cover some or all of the following items:

• The insured party
• The insured vehicle
• Third parties (car and people)

In some States coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)
Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently.

Excess
An excess payment, also known as a deductible, is the fixed contribution you must pay each time your car is repaired through your car insurance policy. Normally the payment is made directly to the accident repair "garage" (The term "garage" refers to an establishment where vehicles are serviced and repaired) when you collect the car. If one's car is declared to be a "write off" or "total loss"("write off" is commonly used in motor insurance to describe a vehicle the worth of which is less than the cost of repair), the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to you.
If the accident was the other driver's fault, and this is accepted by the third party's insurer, you'll be able to reclaim your excess payment from the other person's insurance company.

Compulsory excess
A compulsory excess is the minimum excess payment your insurer will accept on your insurance policy. Minimum excesses vary according to your personal details, driving record and insurance company.

Voluntary excess
In order to reduce your insurance premium, you may offer to pay a higher excess than the compulsory excess demanded by your insurance company. Your voluntary excess is the extra amount over and above the compulsory excess that you agree to pay in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by your insurer, your insurer is able to offer you a significantly lower premium.