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How to Save on Auto Insurance
Effective April 1, 2008 Massachusetts auto insurance coverage and rates are deregulated similar to other states. For good drivers, deregulation means that most insurers will offer slightly different coverage options and discounts that were not previously available. Deregulation is not good news for bad drivers or those with a bad policy payment history. This latter group may not be able to choose their insurer. They will be assigned an insurer. How do you ensure you are in the good group?
1) Drive Safely - Your Safe Driver Insurance Plan (SDIP) Points substantially impact costs. Each point increases the base premium of coverage parts 1, 2, 4 and 7 by up to 7.5% for drivers licensed under 6 years, and up to 15% for drivers licensed 6 or more years! If you are found at fault in an accident (your insurer should notify you with a Surcharge Notice) or if you get a moving violation ticket where you may be improperly surcharged you may want to appeal the charge.
Even if you can't eliminate a surcharge point through an appeal, if you can drive safely for 3 consecutive years and you have no more than 3 surchargeable incidents in the last 5 years, each incident will be reduced by 1 point.
Drivers who move from out of state, should get Mass. drivers licenses and, assuming the driver's record was good over the last 5 years, have it transferred over to Massachusetts.
2) Choose Coverage Limits Carefully - Collision coverage is one of the most costly parts. So, if coverage is not required (e.g., by the lien holder due to a loan) you may want to self-insure this part. This is particularly true if an operator is an Inexperienced Driver class (licensed under 6 years) or if the driver has a few surcharge points. Also, since auto insurers reimburse losses on an actual cash value basis, an older car may be judged a total loss despite having no more than cosmetic damage. We can help you determine what parts make sense for your situation.
3) Pay Your Premium On Time - If your policy is cancelled for not making a timely payment or if you receive a number of cancellation notices during a policy year, your insurer may not rewrite your policy. In that case, you may need to get insurance through the assignment pool and lose the ability to get discounts.
4) Vehicles and Territories - What vehicle you drive and where it is garaged can impact the premium. If you are trying to determine which type of vehicle to purchase, call us to determine how insurance will impact the cost.
5) Look For Discounts - There are some general discounts that all Massachusetts insurers provide, such as low mileage, anti-theft, and multiple car discounts. Now there are other insurer specific discounts. Be sure to ask us about discounts for insuring your home, a hybrid vehicle, staying with the same insurer, and other programs.
6) Does The Insurer Provide Extra Coverage Endorsements? -For example, Safety Insurance, under the Safety Shield endorsement, waives the $500 collision deductible, even if a named operator is at fault in an accident, if the operator has driver step 98 or 99.
7) Cost Is More Than Just The Premium - If you are financing the premium, some companies charge more than others or require higher down payments. Does the agency or company charge you for Registry of Motor Vehicle work? How quick and fair is the insurer in handling claims? How much time do you need to spend handling bills, claims, coverage, etc? We provide both competitive prices and superior service.
Have more questions about auto insurance? Visit the Insurance Information Institute's site.