Connecticut Better Business Bureau Offers Tips to Get the Most from Your Auto Insurance

Shopping Around and Knowing Your Options Can Make a Big Difference in Premiums

Motor vehicle collisions and other auto-related mishaps cost billions of dollars in property damage, medical and legal bills, as well as lost income every year.  Drive must protect their vehicle, third parties and themselves with auto insurance, but how much coverage is appropriate?

It’s not enough to simply have vehicle insurance.  Drivers should be aware of what their insurance covers, what it doesn’t and how to bring down the cost of their insurance premiums.

Better Business Bureau advises:

Understand the insurance coverage you are buying - Compare the different types of insurance and choose the coverage that best suits the vehicle you own and your financial situation.  Most jurisdictions require you to carry liability insurance in case you are at fault in an accident.  But if your car is relatively new or if you still owe money on it, you will want to consider collision insurance, as well.

Know your options – The cost of vehicle insurance varies considerably, depending upon the driver’s safety record, previous accidents, the value of the vehicle, and where you live.  One way to lower premiums is to raise your deductible.  A higher deductible comes into play in the event of an accident, but drivers with a clean record and safe driving habits can benefit from more favorable premiums.

Get rewards for safe driving – Some insurance companies offer various “rewards” for drivers who are accident-free, such as safe driver discounts including periodic refund checks and lower deductibles.  When shopping around, ask insurers whether they offer such programs.

Read the policy to make sure you are getting all possible discounts – Safety features translate into discounts.  These include airbags, anti-theft devices and anti-lock brakes.

Bundle it to save – Ask what kind of discount you can receive if you bundle vehicle insurance with homeowner’s, renter’s, umbrella or life insurance from the same company.

Consider paying for minor collisions – When you open an insurance claim, you are telling insurers that you are a risk and that translates into higher premiums.  If you have minor damage to your vehicle from an accident that does not involve injury or other people’s property, consider paying it out of pocket rather than filing a claim.  If you cause minor damage to another vehicle, you also may be able to arrange to pay for the damage yourself, however, always call the police for any accident involving injury, another vehicle or if you damage a guard rail, utility pole or other property.

Report damage to your insurance company as soon as possible - If you are in an accident, or your vehicle suffers damage from severe weather, contact your insurance agent or claims center right away.  They may be able to save you money and arrange to have your car towed if it’s not drivable.

Shop around - It is an insurance buyer’s market with more choices than ever, and there are brokers and websites that can compare rates offered by various insurance companies.  Make certain you are adequately covered for bodily injury liability, collision, property damage, medical costs and under-insured or uninsured drivers.   

Aside from referrals from friends, the Connecticut Insurance Department provides a list of qualified companies and agents. 

BBB rates tens of thousands of insurers, car dealers and auto repair facilities.  Be sure to check out bbb.org before buying, insuring or repairing your vehicle.

-Submitted by Howard Schwartz, Executive Communications Director, Connecticut Better Business Bureau