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Car Insurance...Getting The Most For
Your Money
Does
this sound familiar?
You've
been a responsible driver for many years, but you notice an
upsetting pattern; every year your car insurance premiums
creep upward. What's going on? What are you doing wrong? Well,
the answer may be "nothing." Remember that the cost
of providing insurance, as it is with other products and services,
may increase for various reasons. Factors that can affect
car insurance premiums include the following:
- Your
insurance company's overall loss experience (due to a higher
level of claims)
- The
increased value of newer model cars
- Increases
in judgment amounts awarded in auto lawsuits
- Increased
business processing and administrative expenses
What
these items have in common is that they're out of your control...so
don't worry about them. However, you do have some control
over what happens with your premiums. It may be time to step
back and take a fresh look at your car insurance. How do I
evaluate my situation?
A good
first step is to gather your insurance records and any other
car-related information. Next, determine if circumstances
have changed since you last dealt with your coverage. Consider
your cars or trucks, how they're now used, who are the drivers
and your driving experience. Once this information is handy
it's time to call your agent. What should you discuss? Well,
here are some areas to consider:
- If
you have your home and auto insurance with the same company,
are you getting a discount?
- Does
my coverage take full advantage of the discounts offered
by my company?
- I
have more than one car; am I getting a credit?
- How
much premium can I save by changing deductibles? Determine
the dollar amount of any loss that you can comfortably handle
as an out-of-pocket expense.
- Do
my cars really need full coverage insurance? On an older
car (over six years old) you may want to drop collision
and/or comprehensive coverage and carry liability coverage
only. Ask your agent what makes sense. IMPORTANT: you must
maintain these coverages if you're still paying off a loan
on your car or truck.
- Do
lifestyle choices such as drinking or smoking affect my
premium?
- Does
it matter that my daughter made the Dean's List? Don't think
this information is bragging since your company may give
discounts to young drivers with good grades.
- Did
you know that my car has anti-lock brakes; airbag; theft
alarm system? (Some companies provide discounts for safety
and anti-theft features)
- Did
you know that my son took Driver's Education?
- Does
the company have accurate information on how often and how
far I drive?
- Am
I with a standard carrier or do I qualify for any preferred
program?
- Is
my vehicle charged an additional premium because of its
type or performance?
- Do
I get a credit for my driving/claims history or for how
long I've been covered? If applicable, find out if your
company rewards a loss-free history or longevity.
Communicating
with your agent
The best
way to discuss your insurance needs is to be open and honest
with your agent. Giving your agent accurate information puts
him in the best position to make certain that you get the
best available premium. Carefully answer your agent's questions
and provide complete details about any tickets, accidents,
or violations in your driving history. This approach also
applies to information about who drives your cars and how
the cars are used. Finally, your agent is a terrific resource
for handling errors about your account or which may be shown
in your driver records. . . so use their expertise.
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Martinson
Insurance
518 Hawthorne Street • PO Box 8
Alexandria, MN 56308
Phone: 320-763-6518
Toll Free: 800-757-6518
Fax: 320-763-5546
E-mail: agency@martinsoninsurance.com
Web: www.martinsoninsurance.com
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