Reducing Auto Insurance Expenses without Cutting Corners

04/20/2010

Most states mandate that motorists purchase auto insurance - or have sufficient funds to cover claims - before slipping behind the wheel.

But with economic conditions forcing some to cut costs, many individuals are opting to operate their automobile uninsured. A recent report by SmartMoney.com offered advice on how to reduce expenses on insurance without cutting corners. Picking the right car is often the first step in securing an affordable insurance rate.

Cars that are historically chosen by cautious drivers may come with lower rates than a flashy sportscar or inexpensive automobile commonly purchased by inexperienced, young motorists. Last year's model often comes with lower rates than the most recent vehicles, according to the report. Safe driving may also be rewarded with discounts.

"A solid driving record can make all the difference in how affordable insurance is for a hybrid car," the report said. "Hybrids have expensive parts and mechanics must be specially trained, which pushes up costs."

Cars that have not been recalled are also more affordable to insure because they are associated with fewer claims, according to the report. Consumers may find information about crime-related claims by viewing the National Insurance Crime Bureau's stolen car list.

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