2. Use your deductible to save money. If you purchase comprehensive and collision coverage, you'll be asked to select a "deductible" amount, that is, the amount you'll pay on a claim before the insurance company begins paying. When selecting your deductible level, consider how much you could afford in the event of a crash. Most people select $500 deductibles because a higher deductible helps to keep the overall cost of auto insurance down. According to the Insurance Information Institute, increasing your deductible from $250 to $500 can save you up to 20 percent on comprehensive and collision coverage.
3. Make sure your policy reflects your needs. Have you recently married, divorced, moved, or have a teenage son or daughter who is now driving? Speak with your independent agent or insurance company to be sure that the coverage you purchased still reflects your needs.
4. Prices vary. Auto insurance rates are based on each company's expected cost of doing business, which includes the cost of paying claims. The claims data used by each company generally includes the number of accidents and the cost of those accidents. And, the claims data used varies from company to company, which leads to a large spread in rates available to the same consumer for comparable coverages. In fact, in a study of rates provided to more than 100,000 consumers, Progressive found that the average difference in premium based on a six-month policy for the same driver with comparable coverages was nearly $600 from company to company.
5. Go online. A wealth of information is available on the Internet at sites like www.progres sive.com.
Learn more about auto insurance by visiting a Progressive authorized independent agent or broker, calling 1-800-PROGRESSIVE or logging onto progressive.com.
Media Release Date: 11/5/03