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Consumer Alert from the
Utah Insurance Department:

Tips for Saving Money on Auto Insurance

Auto insurance is an important — and oftentimes, mandated — purchase for most Americans. The average annual auto
insurance premium nationwide in 2000 was $687 per vehicle. Here are some tips from the Utah Insurance Department to help you get the best value for your auto insurance dollar.
1. Maintain a Good Driving Record
Companies charge safe drivers (i.e., free of at-fault
accidents or violations) lower rates for automobile
insurance. Each company has different guidelines to
determine what price an individual will be charged.
6. Consider Revising Coverage, Deductibles
You may reduce your auto insurance costs by raising
the deductibles on physical damage (collision and
comprehensive) coverages. Be sure to review your
current deductibles to determine whether you can
afford to absorb a larger portion of your loss in the
event of an accident. Also, consider lowering or
eliminating physical damage coverages on older
vehicles — unless a lienholder, such as a bank,
requires it.
2. Comparison Shop
It pays to shop around before buying insurance, since
prices can differ among companies. In addition to cost,
you should also carefully consider other factors such
as service, dependability and the financial condition of
the insurance company.
7. Consider Cost of Insurance Before Buying a Car
Insurance companies usually charge higher premiums
for cars that cost more to repair or offer occupants less
protection from accidents. Companies may also charge
more for cars that tend to cause more damage when
involved in accidents, such as certain sport utility
vehicles (SUVs). Cars with high theft rates, such as
sports cars, also cost more to insure.
3. Give Complete, Correct Information
When you call for a quote or fill out an application,
give complete and correct information. Since your
premium quote will be based on this information, it is
very important that your information be as accurate
and complete as possible.
8. Regularly Review Your Policy; Update Accordingly
Regularly review your policy to make sure the basis
for your premium is as accurate as possible. Here are
some factors that can affect your premium:
• Adding or removing a vehicle from your policy
• Replacing an older vehicle with a newer one
• Adding or removing a driver
• Increasing or decreasing the number of miles
driven each year
• Moving to a new address
4. Ask About Discounts
Ask your agent or company if you are eligible for
any discounts. Here are some discounts that may be
• Two or more cars on a policy
• Participation in driver education courses
• Good student driver under age 25
• Mature driver (between 50 and 65 years of age)
• Airbags or other safety equipment
• Anti-theft devices
• Auto/home insurance on same policy or with
same company
9. Get More Information
For more in-depth information, order a copy of the
“Consumer’s Guide to Auto Insurance” from the
NAIC at If you believe you have been
treated unfairly in shopping for auto insurance or in
getting a claim paid, please contact the Utah Insurance
by phone, 801-538-3890 or 1-800-439-3805,
or email us at
5. Verify Your Information, Policy
When you receive your insurance policy, check that
the information used to determine your premium is
correct. In particular, you should verify that:
• Your mailing and/or home address is correct
• Each vehicle is properly classified
• All discounts to which you are entitled are applied
• Your vehicle(s) make and model are correct
• All drivers’ age/birth date(s) are correct