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Saving Money on Your Car Insurance

by Mark Shaw on February 18th, 2011

If you have inexperienced drivers: make sure they take driver’s ed and that occasionally they are NOT the principal drivers. They key in this savings tip is to have more drivers than cars.

Look into group discounts: AAA, college alumnae, BJ’s, COSCO, church groups, Massachusetts Bar Association… this should give you some ideas. Not every insurance carrier offers group discounts, but many do. Each insurance company is different, so do your research.

Combine insurance types with same carrier: See if you can have your auto and home insurance with the same company, for example. If the answer is “yes,” then a 10 auto insurance percent discount is usually in offing.

Low mileage credits: If you drive your vehicle less than 5,000 miles annually you can save up to 10 percent more. If you drive less than 7,500 miles annually you can save five percent more. If you are insured with Tavelers and do less than 10,000 miles annually you can still qualify for a low mileage credit.

Student discounts: Children who are good students also qualify for auto insurance discounts with many carriers. Students who are away at college or prep school who don’t or can’t drive cars at their school may qualify for additional auto credits. [NOTE: make sure they don’t drive other students’ cars or friends’ cars if they have been excluded from your policy.]

Leasing Address: If you are a business and you are leasing a vehicle, look into the reduction for having the car based at your home town instead of having it based at your business location. If you do that, remember that your excise tax will come from wherever your leased vehicle is based.

Business write-offs: If you use your car in your business and want to write it off for IRS purposes, tell your agent to use class 30, which indicates a business-use class so if you ever carry customers (accountant, attorney, realtor, etc.) you would always be covered and also justify the deduction.

Shaw Insurance: you’ve tried the rest, now try the best.

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