Test drive car policies

Lots of factors can help cut insurance rates, from good grades to air bags.

Published online on Monday, Oct. 26, 2009

Question: How can I save on car insurance?

Answer: Even within the same community, auto rates can vary widely among different insurers, which is why it pays to shop around.

There are myriad Web sites -- www.bankrate.com, for instance -- that let you comparison-shop online among various insurers.

Or you can call insurance companies directly or contact a local broker-agent, who represents a number of individual companies and can quote comparative rates.

Be prepared to answer lots of questions about how much and what types of coverage you want. You'll also need to know the ages, marital status, annual mileage and driving record (accidents and moving violations) for every driver in your household. And for each vehicle you'll need the model year, purchase cost and any special equipment, such as stereo systems.

From good grades to short commutes, there are lots of ways to lower rates. Here are a few:

-- Multi-policy discounts. If you have more than one type of policy with the same company, most firms will lower your premiums.

-- Good driver. Usually there's a 20% discount if you have at least three years' driving experience, and no more than one point on your driving record -- for speeding tickets, accidents or other moving violations.

-- Good student. If your son or daughter is a full-time student younger than 25 and maintains a "B" or better grade average, you can get lower rates. In most cases, you have to provide a grade transcript or proof of GPA.

-- Low mileage. If your daily commute is three miles or less, you might qualify for a "pleasure" rate, indicating you're mainly driving to pick up kids, grocery shop or run errands.

-- Safe car. If your vehicle has anti-lock brakes, air bags or approved alarm systems, you may get a discount.

-- Job-related. Certain professions -- firefighters, teachers, physicians, engineers, CPAs, for instance -- earn discounts from some insurers because they're considered to have lower claims or are a target market.

-- Easy pay. If you pay your premiums using automatic deductions from your checking account, some insurers will waive monthly billing fees or the initial down payment. You might also save by paying your annual premium as a lump sum.

-- Other ways to save: If you're 55 and retired, if your under-21 college student lives more than 100 miles from home, if you've taken "mature driver" or other safe-driving classes.