Auto Insurance; Top 10 Checklist Uncovers Hidden Savers

LOS ANGELES--April 13, 2005--Consumers are countering rising gasoline prices and other vehicle operating costs by capitalizing on lower auto insurance rates, according to Answer Financial Inc., the nation's leading independent insurance agency. With more than 100,000 in-force policies across all 50 states, the Los Angeles-based company has observed an increase in consumers shopping online for policies and pricing across its own and its competitors' rate cards. Answer Financial's "Top 10 Rate-Saver Checklist" reveals several points often overlooked by individuals and families in shopping for lower cost and better quality auto policies.





"In the face of soaring gas prices, consumers may feel powerless, but they can lessen the pain by shopping for better priced insurance, which remains a large expense of vehicle ownership," says Alan Snyder, CEO and founder of Answer Financial Inc. "Shopping for car insurance slashes costs. Drivers generally are unaware of the myriad factors that determine rates, particularly with auto policies. In today's market, thanks to the Internet and to competition, it's easier than ever to get more value at a lower cost."



Auto policy costs and regulations vary significantly from state to state, but there are a number of areas that consumers are able to control and adjust to optimize prices and quality, Snyder notes.



Answer Financial's Top 10 Rate-Saver Checklist



1. Check Credit Rating - In all states except California, an

individual's credit rating is a key factor that affects auto

insurances rates. Good credit will be interpreted by insurers as

less risky. Thus, it's important for consumers to order copies of

their credit report from all major credit agencies to ensure

accuracy and to correct any inaccurate derogatory points, such as

late or missed payments, maxed-out credit lines, bankruptcy,

foreclosure, etc.



2. Check Motor Vehicle Report - Like credit reports, state driving

records may include inaccurate data on personal driving records,

which are strongly considered when issuing respective individual

and family auto rates. In addition, tickets, traffic school

credit, and accident fault are sometimes not accurately reflected

in state data, costing consumers hundreds or even thousands of

dollars. Drivers should report errors to both their state motor

vehicle department as well as their insurance carrier.



3. Double Check Accident Reports - Local law enforcement and

insurance accident reports occasionally include mistakes that will

result in a higher rate. Accident reports are separate from motor

vehicle records. Accident reports affect insurers' decisions and

rates on a cumulative basis particularly if the driver has tickets

or accidents down the road.



4. Never Let Coverage Lapse and Review Deductibles - Maintaining

coverage without lapse makes a significant difference in rates.

Separately, while deductible amounts initially save drivers in the

event of a quick claim, they cost consumers more in the long run

due to higher premiums. Drivers almost always save on premiums

with higher deductibles of $500 or $1,000.



5. Look for Package Rates - In addition to multiple-vehicle

discounts, consumers often save substantially by packaging all

their insurance policies including auto, home, and personal

liability together with one company.



6. Don't Miss Good Student and Mature Driver Discounts - Most

consumers know that safe drivers are rewarded by insurers, but

it's important to make sure your policy gives you a good driver

discount. Most insurers lower rates for mature drivers (55 years

and over) and for students who carry a 3.0 grade point average or

better. Some carriers give more credit for these points than

others, so shop around.



7. Take a Driving Safety Course - Many insurers will cut rates for

drivers who take an approved driving safety course. Make sure that

you've registered for a course recognized by your carrier, which

will not only cut your rates but likely save in ticket fines and

reduce your risk of bodily injury on the road.



8. Don't Forget Car Pool Credit - Many auto carriers drop premiums if

you car pool to the office, especially if you drive more than 10

miles roundtrip. In addition, you'll save considerably on the

rising prices at the pump and lend a hand to Mother Nature.



9. Check Rates Before Buying a New Car - Insurance rates vary

considerably from car to car. Often expensive vehicles can add

$50 - $100 per month in premiums. The type of vehicle, engine size

(you'll pay for that turbo), parts costs and safety tests are all

factored into insurance premiums. Sport cars and SUVs generally

are more expensive to insure. Buyers often do not realize the big

rate differences until after they drive off the lot.



10. Take Credit for Safety/Security Features - Drivers should make

sure they are receiving lower rates for safety features such as

air bags and anti-lock brakes. Devices that deter theft, such as

alarm systems or devices that disable or track vehicles (such as

LoJack), may also qualify for discounts. Some companies even waive

deductibles if the car has been damaged when it was stolen but is

recovered using a tracking device.