(NUI) - Policyholders have seen a rise in their auto insurance costs recently. In fact, the average cost of auto insurance is estimated to increase by 9 percent in 2003.

However, drivers can significantly reduce the cost of car insurance by taking advantage of discounts that many providers offer.

"Drivers looking for auto coverage may assume that rates are similar among insurance providers, so they may not shop around for the best price," said Steven Paul, vice president at Insurance.com, an online insurance resource. "Buying a policy without researching it first, however, could be an expensive mistake."

Understanding the factors that impact auto insurance premiums can help savvy shoppers make better decisions and possibly save them money in the process. Insurance.com offers the following tips to help people learn more about their coverage and identify possible discounts:

* Select coverage carefully. Compare the book value of a car against its current premium combined with its deductible. While all drivers are required to carry enough liability insurance to meet their state's requirements, collision and comprehensive coverage is optional and may not be necessary or cost-effective for drivers with older cars. Another way to lower a premium is to select a higher deductible.

* Consolidate. Most providers offer multi-policy and multivehicle discounts. Combining car and homeowners insurance can save both time and money. Additional discounts may be available for people who have more than one vehicle insured with the same provider.

* Choose a highly rated model. Agencies assign a rating to every car model based on historical collision, injury and theft claims, among other factors. The higher the rating, the more consumers can reduce their premiums.

* Take preventative measures. Many providers award discounts to customers who take steps to protect their cars from physical damage and theft by opting for antilock brakes, air bags, alarm systems and other security devices.

* Drive carefully. The more careful and experienced the driver, the less risk insurance providers take, therefore lowering the premium. Some insurance companies also offer discounts to policyholders who complete a defensive driving class.

* Drive a friend to work. Discounts can apply to carpool participants because each individual's car is at less risk than if they commuted separately. Commuter discounts also are available for car owners using public transportation because their vehicles will have lower annual mileage than if they drove to work each day.

To learn more about the factors that affect the price of insurance premiums, log on to www.insurance.com.



(NUI) - Policyholders have seen a rise in their auto insurance costs recently. In fact, the average cost of auto insurance is estimated to increase by 9 percent in 2003.

However, drivers can significantly reduce the cost of car insurance by taking advantage of discounts that many providers offer.

"Drivers looking for auto coverage may assume that rates are similar among insurance providers, so they may not shop around for the best price," said Steven Paul, vice president at Insurance.com, an online insurance resource. "Buying a policy without researching it first, however, could be an expensive mistake."

Understanding the factors that impact auto insurance premiums can help savvy shoppers make better decisions and possibly save them money in the process. Insurance.com offers the following tips to help people learn more about their coverage and identify possible discounts:

* Select coverage carefully. Compare the book value of a car against its current premium combined with its deductible. While all drivers are required to carry enough liability insurance to meet their state's requirements, collision and comprehensive coverage is optional and may not be necessary or cost-effective for drivers with older cars. Another way to lower a premium is to select a higher deductible.

* Consolidate. Most providers offer multi-policy and multivehicle discounts. Combining car and homeowners insurance can save both time and money. Additional discounts may be available for people who have more than one vehicle insured with the same provider.

* Choose a highly rated model. Agencies assign a rating to every car model based on historical collision, injury and theft claims, among other factors. The higher the rating, the more consumers can reduce their premiums.

* Take preventative measures. Many providers award discounts to customers who take steps to protect their cars from physical damage and theft by opting for antilock brakes, air bags, alarm systems and other security devices.

* Drive carefully. The more careful and experienced the driver, the less risk insurance providers take, therefore lowering the premium. Some insurance companies also offer discounts to policyholders who complete a defensive driving class.

* Drive a friend to work. Discounts can apply to carpool participants because each individual's car is at less risk than if they commuted separately. Commuter discounts also are available for car owners using public transportation because their vehicles will have lower annual mileage than if they drove to work each day.

To learn more about the factors that affect the price of insurance premiums, log on to www.insurance.com.