Read our informative local car insurance FAQ

Q: How can I lower my car insurance costs?
A: There are a variety of methods for lowering your auto insurance rates. Here are some tips for doing so. For more information on a particular item click on it.
Comparison shop
Take a higher deductible
Drop collision damage on older cars
Buy a low-profile car
Check insurance costs by community when you are planning a move
Do not duplicate medical coverage
Pay premiums annually
Inquire about discounts

Q: How should I handle an auto insurance claim?
A: Here are some tips for making sure that you obtain a fair settlement and obtain payment on a claim as quickly as possible.

Start a file on the accident immediately. Put into it hospital bills, police accident reports, and copies of claims you have submitted.
Each time you speak to an insurance company representative by phone, write a follow up letter summarizing what was said. Include the date of the conversation and the name of the person spoken to. Put a copy of the letter in the file.
If it is taking a long time to obtain your settlement, check your policy to see whether interim rental car expenses are covered. If so, rent a car. The insurer will be motivated to speed things along to avoid incurring this cost.
If you feel the company is being unreasonable—is delaying or not acting in good faith—make a complaint to your state’s insurance regulator.
If you’re getting nowhere, consult an attorney.

Q: Does it make sense to comparison shop for auto insurance?
A: Don’t assume that all insurance companies charge the same rates. There are several thousand different auto insurers in competition. You can save from 30 to 50 percent by comparing costs.

Costs are usually based on factors such as the age, gender, and driving record of the vehicle’s driver's); the state of residence; the age and value of the vehicle; and the frequency and purpose of the vehicle’s use.

First, contact the insurance regulating body in your state and find out whether they provide a free pamphlet that ranks insurers by price. Many state insurance departments do this. Obtaining this pamphlet will save you a lot of time on the phone asking for price quotes.

If no pamphlet is available, get quotes from independent agents (those who represent several insurance companies) as well as from "direct writers." Direct writers sell directly to the public and not through agents. You may save about 10% because you're not covering an agent's commission.

When calling an insurance company, ask if the insurer is a "mutual company"--one owned by its policyholders--as is the case with Amica. If so, ask what percentage of its premiums are returned to policyholders. You may find, for example, that Amica's premiums are higher than those of some other companies, but that it pays annual dividends of 18% to 20% to policyholders. These dividends reduce your insurance costs.

In addition to asking insurance agents and insurance companies, be sure to ask colleagues and friends about their carriers. You might also look in the yellow pages, check with your state insurance department, and look in consumer guides.

It’s important not to neglect factors other than price. Quality personal service may cost a bit more, but provides added conveniences, so talk to a number of insurers to get a feel for the quality of their service. Ask them how you can lower your costs.

Q: How much of a deductible should I take on my car insurance?
A: It may pay to absorb the cost of fender-benders yourself. In other words, get the highest deductible you can afford. (The deductible is the dollar amount you agree to pay out-of-pocket before insurance kicks in.) If you cover the cost of small claims and the insurance company covers the large ones, it makes a huge difference: raise your deductible from $100 to $500, for example, and you'll reduce your premiums by 10% to 20%. Raise the deductible to $1,000 and you can save 25% to 30%.

Q: Is it worthwhile to maintain collision coverage on older cars?
A: Collision coverage takes care of the cost of repairing your car if you're in an accident, regardless of who's at fault; comprehensive pays if your car is stolen or damaged by fire, flood, hail or wind. If your car isn't worth much, why pay a premium for repairs on a vehicle you'll probably replace if it's badly damaged? Collision damage for an older car can cost more than the car is worth.

If your car is worth a few thousand dollars it may not be cost effective to pay for this coverage.

Q: Does the kind of car I buy affect my insurance?
A: Before you buy a new or used car, check into insurance costs. Cars that are expensive to repair, or that are favorite targets for thieves, have much higher insurance costs.

Not surprisingly, the more expensive the car, the more expensive the insurance. Cars that thieves love --Porsches, Jaguars, BMWs and sports models in general, are more costly to insure. The latest study shows that it costs three to four times as much to insure a Porsche as a Buick or a Ford.

If you buy a used car, insurance will be significantly lower.

Q: Does my address affect my car insurance?
A: Costs tend to be lowest in rural communities and highest in cities where there is more traffic congestion. Additionally, rates vary within cities base upon the incidence of auto thefts and damage within particular areas. Very often zip codes or common streets are used to denote where rates change. Call your agent when you are planning a move to find out car insurance costs in particular areas. While differences in cost will not likely sway your decision as to which house to rent or buy, this may give you an idea which areas you should consider or avoid.

Q: Does it make a difference if I pay my insurance annual, semi-annually
A: Installment plans are convenient but wind up costing more because of fees or interest charges. You are usually better off paying the entire insurance bill when you receive it.