Shopping around for auto insurance may not be your idea of fun, but comparing prices for a new policy every few years–or even more often–can pay off big. Premiums for two people in the same zip code with the same driving record can differ by a thousand dollars or more. The reason: Companies weigh risk factors or black marks on your record differently. For example, adding a teen driver or moving to a new part of the city can cause your premiums to spike, and some insurers penalize you after a single accident or speeding ticket. But other companies may raise rates more gently when your teen starts to drive, or they may overlook that accident.
Follow these six steps to save money on your insurance without compromising valuable coverage. Keep in mind that insurers typically cut you a break of 5% to 20% for bundling your auto policy with homeowners or other types of coverage, so get quotes for separate policies as well as for your whole panoply of insurance.
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