1. It’s not all about you. Your age, location and driving history influence your premiums. But insurance rates for a new model are based on the manufacturer’s suggested retail price. Later, premiums reflect the number of claims other drivers of the vehicle file and how expensive those claims are.
2. That midlife-crisis car will cost you. Insure.com’s list of the most expensive 2009 vehicles to insure is rife with pricey sports cars. At the top of the list are the Nissan GT-R, Dodge Viper and BMW M6 — all with an average annual premium of $2,200 or more. The least expensive models to insure are family cars (surprise!), such as minivans and small sport utility vehicles. If the car is relatively inexpensive to repair, that helps, too.
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3. Safe drivers save lives — and money. Most insurers won’t drop you for one accident. But, says Sam Belden, vice president of Insurance.com, two traffic incidents — speeding tickets or other moving violations — can add 30 percent to your rate; two accidents that are deemed your fault can raise your premiums by 50 percent or more. And a DUI conviction could get you dropped, says Amy Danise, an editor at Insure.com.
4. Trim coverage to cut costs. Raising your deductible is a logical way to save — but be sure you’ll be able to pay the increased deductible out of pocket. If your car is 5 years old or older, consider dropping collision and comprehensive coverage, which could reduce your premium by 25 percent to 40 percent. But don’t be tempted to let your insurance lapse. Not only is it illegal, it’s expensive: Going even a week with interrupted coverage can raise your rates by 50 percent to 75 percent, says Belden.
5. Take advantage of all discounts. Most carriers have a laundry list of them. The most common is a multiple-policy discount, which can lower your rates 10 percent to 20 percent. Driver-improvement courses, such as online programs from Improv Aware Driver ($28 to $45; www.myimprov.com), will save you 5 percent to 10 percent in some states. Other discounts include those for safe drivers, good students and students away at college, and for cars with anti-theft devices. You could qualify for a low-mileage discount if you drive less than 10,000 miles a year.
6. Reshop your insurance. If you’re buying a home, say, or adding a teen driver, it pays to compare rates at sites such as Insurance.com and Esurance.com. But even if nothing has changed, reshopping every year or two will remind you what you’re paying for. “Auto insurance is the one thing people spend $1,000 a year on and don’t know much about,” says Kristin Brewe of Esurance.com.
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