Rest Insured

Keeping the brakes on car insurance costs
Magazine Contributor
2 min read

This story appears in the September 2000 issue of Entrepreneur. Subscribe »

As inevitable as the sunset but a lot less welcome, auto bills keep coming in. As you review your coverage for the coming year, you're probably considering buying cheaper insurance. But this can come back to bite you if the insurance company isn't reputable, offers poor service, or refuses to honor your claims, says Jeanne Salvatore of the Insurance Information Institute. Although auto insurance is an expense that has no ROI unless you're in an accident, taking a chance with insurance could cost you if you have to make a claim.

And while you're at it, do you need that commercial van, or would a smaller do? The bigger the vehicle, the higher the annual insurance bill.

Following are a few things to think about before your next renewal:

1. Put your car in your company's name to benefit from a business insurance rate, usually lower than a personal policy.

2. Shop around to compare prices.

3. Check out your insurance company's ranking. Some state departments of insurance offer this service.

4. Before you buy a car, know its insurance costs. Sports , SUVs and imports carry the highest rates.

5. Take advantage of opportunities for discounts: a good driving record, safety equipment, antitheft devices, more than one car under the same policy, low annual mileage, and combined commercial auto and business policies.

6. If your car is worth under $1,000, forget theft insurance. If your car is more than five years old, drop collision and comprehensive coverage.

Jill Amadio has reported on the automotive industry for 23 years as an editor and consultant.

Contact Source

  • Insurance Information Institute, (800) 942-4242,

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Amplify your business knowledge and reach your full entrepreneurial potential with Entrepreneur Insider’s exclusive benefits. For just $5 per month, get access to premium content, webinars, an ad-free experience, and more! Plus, enjoy a FREE 1-year Entrepreneur magazine subscription.
Entrepreneur Store scours the web for the newest software, gadgets & web services. Explore our giveaways, bundles, "Pay What You Want" deals & more.

Latest on Entrepreneur