How to Buy Car Insurance

Collision and comprehensive coverage typically have deductibles—the amount that you agree to pay on your own before the insurance policy "kicks in." High deductibles translate to lower premium rates, because you're transferring part of the risk to yourself.


Discounts may be available to drivers who complete a defensive-driving class or have a clean record for a stated number of years, to owners of cars equipped with certain safety devices, to senior citizens or retirees with good records, to good students, to owners of specified vehicles, to new-car buyers, and for many other reasons. Each insurer has its own criteria for determining who gets a lower rate. Always ask about availability of any discounts to which you might be entitled. Discounts often apply only to certain parts of the total policy, so they don't necessarily amount to huge savings.

Reduce Risk
Each element of the policy is priced separately. Determine exactly what you're paying for the liability portion, and how much any additional coverages cost. Skimping on liability is unwise, but if the total cost is high, consider dropping some of the nonessentials. Attempting to reduce risk in every possible way gets expensive—and you could always be involved in an incident that doesn't happen to be covered.