Many experts recommend reviewing your auto insurance policy every year or so. An occasional review makes sense, especially if life changes warrant changes to your current auto insurance policy. And even if you don't need to make changes, staying familiar with your coverage is a good idea.
But before you dig in to those auto insurance details, remember that your policy premiumthe amount you pay for your auto insuranceis determined by multiple factors.
Where you live plays a significant part in determining your rate. A general rule of thumb is that auto insurance is likely to be less expensive in rural areas and smaller towns. Think about it this way: more people + more cars + more roads + more distractions = a greater likelihood of accidents.
So what about the things in your control? The steps below may give you a few ideas about tweaking your coverage to get the best bang for your auto insurance buck.
Consider the car you're driving. What's its actual cash value? If your car's on its last wheels, maybe paying for comprehensive coverage doesn't make sense. Here's a quick rule of thumb: if your car's worth less than 10 times your annual premium, consider dropping comprehensive coverage. But if it's still got that new car smell, comprehensive and collision coverage (based on your policy) are part of your auto insurance that takes care of vehicle damage.
Quick tip: increasing your deductible will help lower your rate. But if your car is damaged, you'll pay more out of pocket. Keep in mind, too, that cars with a long safety record may cost less to insure.
Safer drivers pay less for auto insurance. Recent accidents and/or citations may mean a rate increase. But keep in mind that Allstate's exclusive Your Choice Auto® offers innovative features like Accident Forgiveness to help keep rates from going up after an accident.
Bundling coverages because of life changes can also affect your rates. For people recently married, combining his auto insurance with her property insurance could mean a significant multiple policy discount. Allstate's Multiple Policy Discount is just one of a dozen-plus insurance discounts you may be eligible for. Conversely, adding a new teen driver to your policy may increase your premium.
If you're already an Allstate customer, contact your agent with any questions about your auto insurance policy.
If not, we hope you'll take a few minutes to get a no-obligation quote and compare Allstate to your current auto insurance. Are you in Good Hands?
Published: June 2011