Released August 15, 2008

STILLWATER, Okla. - Although it may not be as much fun as going shopping for new clothes, consumers are urged to shop around when looking for automobile insurance.

There are several things consumer should look for when they are buying a new policy or simply looking for a new insurance company, said Sissy Osteen, Oklahoma State University Cooperative Extension resource management specialist.

“Prices for the same coverage will vary from one company to another, so it pays to shop around,” Osteen said. “You can start with recommendations from friends or call the state insurance department, but be sure to get at least three different quotes.”

Look for a company that offers not only fair prices but excellent service as well. Quality personal service may cost a little more, but it provides added convenience.

Another way to help cut down on the cost of auto insurance is to have higher deductibles. Increasing a deductible from $200 to $500 could reduce the collision and comprehensive cost by 15 percent to 30 percent.

For consumers who drive older cars, consider dropping collision and/or comprehensive coverage. It may not be cost effective on cars worth less than $1,000 because any claim made would not substantially exceed annual cost and deductible amounts.

“Although you may want to drive the most popular vehicle on the road, check into the insurance costs of such vehicles,” she said. “Cars that are favorite targets for thieves or are expensive to repair have much higher costs.”

Individuals who may not drive a lot during the year may be able to take advantage of special offers. Many insurance companies offer discounts to motorists who drive less than a predetermined number of miles per year.

Keep in mind that insurance premiums are higher in cities where there is more traffic and congestion and lower in rural communities.

Osteen also suggests checking into side-impact airbags or other safety feature discounts. Companies sometimes offer discounts for vehicles equipped with special safety features.

Be sure to ask about other discounts and specials a company may offer. Some insurers offer discounts for things such as no accidents in the last three years, drivers over 50 years of age, driver training courses, anti-theft devices, good grades for student drivers and having more than one car insured with the company.

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http://www2.dasnr.okstate.edu/Members/trisha.gedon-40okstate.edu/check-auto-insurance-policies-to-help-ensure-reasonable-rates

Contact: Trisha Gedon, 405-744-3625, trisha.gedon@okstate.edu