SHAVE $1,440 FROM YOUR CAR INSURANCE.

Navigation: Main page

Author: Lankford, Kimberly

IT ISN'T unusual for one auto insurer to charge significantly more than another to cover the same driver, so you can save hundreds of dollars just by shopping (start with InsWeb.com). Once you've settled on a policy, you can save hundreds of dollars more by taking advantage of discounts.

Consider two 45-year-old parents and their 18-year-old son, who share a 2000 Ford Explorer XL and live in Evanston, Ill. State Farm would charge $2,865 a year for a policy with a $250 deductible and coverage of $250,000 per person and $500,000 per accident. Here's how to shave that to $1,425:

Raise the deductible from $250 to $1,000: 21% savings.

Consolidate homeowners insurance with the same company: 10% discount on nearly all parts of the policy.

Install a car alarm: 15% discount on comprehensive coverage.

Report to insurer if the son goes away to college:

31% savings (in our example) if he attends a school at least 150 miles from home. A discount of 5% to 25% for good students is also an option, but only one or the other may be applied.

Total savings in our example: $1,440.

If you don't have a child on your policy, you're eligible for a discount of up to 15% if you drive fewer than 7,500 miles a year.

PHOTO (COLOR)

~~~~~~~~

By Kimberly Lankford