Put Brakes On Car Insurance Rates

Consumers may catch a break on auto insurance rates this year.

Premiums are expected to fall for the first time since 1999, according to Smart Money magazine (http://www.smartmoney.com/).

So, says senior writer Russell Pearlman, now's a good time to try to get a deal on your coverage.

On The Early Show Tuesday, Pearlman offered some strategies to help you save.

Make no mistake — some legwork is needed. But it can pay off.

SHOP RIGHT

Every car insurance company tells you it has the best deals, but it really pays to comparison shop. Get at least three quotes. Companies are more willing to cut deals right now, since they've made so much money in the past few years. Look at multiple companies and plans before you choose your policy. There are many Web sites that help you do this.

If you want to use the Web to compare quotes, you can go to a site such as NetQuote.com.

However, you should also consider calling companies like GEICO and USAA, since you won't find their quotes on these comparison sites. Those sites make their money on referrals and commissions, and neither GEICO nor USAA operate that way.

So, checking the Web and a couple of quick phone calls are the best way to make sure you are getting the best deal.

Also, contact your state insurance department (a quick Google search will help) to find out which underwriters get the fewest complaints.

And check your credit report for errors.

CUT KIDS' RATES

Unfortunately for parents, statistics show that new drivers are more likely to get in an accident. So, if you add a teenage boy to your policy, it can double your premium! Even adding a girl can send it up by 50 percent.

But, if you have a smart kid who generally does well in school, if you can show the insurance company that he or she has a "B" average or higher (the easiest way is to bring his or her high school transcript into your insurance company), you could be eligible for a discount on your premium.

A good example is State Farm. If you have a new teen driver and he/she is a good student, they can get significant discounts: 25 percent for boys and 15 percent for girls (girls have lower premiums to begin with, hence the lower discount). That applies regardless of the type of car and across the country.

Another way to get a discount is if your child takes and passes a driver-safety course; that can save another 15 percent.

Also, this applies to drivers of all ages but, if you have an older vehicle, consider dropping the collision coverage on it, because the replacement value might be negligible. Many parents give their child their old car, so if you do that, you need the insurance to cover the person, but not necessarily damage to the car. You're paying for a service that isn't going to be worth it.

Accepting a higher deductible can also shave off a few bucks.

RESEARCH AND NEGOTIATE

If your car is "totaled," your insurance company will want you to go to a repair shop that it's worked with before. Always get a second opinion from an independent repair shop.

But you should really go to a Web site such as Edmonds.com to find the true market value. Odds are there will be a difference between what the insurance company says and the Edmonds quote.

And don't be afraid to negotiate. Insurers always get nervous when you take notes; when you have facts and show that you're doing research, they'll see you as an informed customer and tend to be more open to negotiation.

Another idea: If you already have car insurance through a company on one of your cars, you can sometimes get a good deal by adding another car to the same company. They may give you a discount on the second policy. It can also apply to other types of insurance: homeowners, renters, etc. -- they may give you a steeper discount if you agree to additional insurance with them.