9 Ways To Lower Your Auto Insurance Costs

One of the best ways to keep your auto insurance costs down is to have a good driving record.
Listed below are other things you can do to lower your insurance costs.


1. Shop Around
Prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or access information on the Internet. Your state insurance department may also provide comparisons of prices charged by major insurers.

You buy insurance to protect you financially and provide peace of mind. It's important to pick a company that is financially stable. Check the financial health of insurance companies and consult consumer magazines.

Get quotes from different types of insurance companies. Some sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several insurance companies. Others do not use agents. They sell directly to consumers over the phone or via the Internet.

Don't shop price alone. Ask friends and relatives for their recommendations. Contact your state insurance department to find out whether they provide information on consumer complaints by company. Pick an agent or company representative that takes the time to answer your questions. You can use the checklist on the back of this brochure to help you compare quotes from insurers and on the same coverage.

2. Before You Buy a Car, Compare Insurance Costs
Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices. To help you decide what car to buy, you can get information from the Insurance Institute for Highway Safety.

3. Ask for Higher Deductibles
Deductibles are what you pay before your insurance policy kicks in. By requesting higher deductibles, you can lower your costs substantially. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.

4. Reduce Coverage on Older Cars
Consider dropping collision and/or comprehensive coverages on older cars. If your car is worth less than 10 times the premium, purchasing the coverage may not be cost effective. Auto dealers and banks can tell you the worth of cars. Review your coverage at renewal time to make sure your insurance needs haven’t changed.

5. Buy your Homeowners and Auto Coverage from the Same Insurer
Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! You may save money buying from different insurance companies, compared with a multi-policy discount.

6. Maintain a Good Credit Record
Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price auto insurance policies. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

7. Take Advantage of Low Mileage Discounts
Some companies offer discounts to motorists who drive a lower than average number of miles a year. Low mileage discounts can also apply to drivers who car pool to work.

8. Ask about Group Insurance
Some companies offer reductions to drivers who get insurance through a group plan from their employers, through professional, business and alumni groups, or other associations. Ask your employer and inquire with groups or clubs you are a member of to see if this is possible.

9. Seek Out Other Discounts
Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course or is at a college out of the area without a car, you may also qualify for a lower rate.

When you comparison shop, inquire about discounts for the following:

[ ] $500 deductible [ ] $1,000 deductible [ ] More than 1 car [ ] No Accidents in 3 Years [ ] No Moving Violations in 3 Years [ ] Driver Training Courses [ ] Defensive Driving Courses [ ] Anti-Theft Devices [ ] Low Annual Mileage [ ] Air Bags [ ] Anti-Lock Brakes [ ] Daytime Running Lights [ ] Student Drivers with Good Grades [ ] Auto and Homeowners Coverage with the Same Company [ ] College Students away from Home [ ] Long-Time Customer [ ] Other Discounts

The key to savings is not the discounts, but the final price. A company that offers few discounts may still have a lower overall price.

These discounts listed may not be available in all states or from all insurance companies.

Car Ads: Reading Between the Lines

Many new car dealers advertise unusually low interest rates and other special promotions. Ads promising high trade-in allowances and free or low-cost options may help you shop, but finding the best deal requires careful comparisons.

Many factors determine whether a special offer provides genuine savings. The interest rate, for example, is only part of the car dealer’s financing package. Terms like the size of the downpayment also affect the total financing cost.

Questions About Low Interest Loans
A call or visit to a dealer should help clarify details about low interest loans. Consider asking these questions:

• Will you be charged a higher price for the car to qualify for the low-rate financing? Would the price be lower if you paid cash, or supplied your own financing from your bank or credit union?
• Does the financing require a larger-than-usual downpayment? Perhaps 25 or 30 percent?
• Are there limits on the length of the loan? Are you required to repay the loan in a condensed period of time, say 24 or 36 months?
• Is there a significant balloon payment —possibly several thousand dollars — due at the end of the loan?
• Do you have to buy special or extra merchandise or services such as rustproofing, an extended warranty, or a service contract to qualify for a low-interest loan?
• Is the financing available for a limited time only? Some merchants limit special deals to a few days or require that you take delivery by a certain date.
• Does the low rate apply to all cars in stock or only to certain models?
• Are you required to give the dealer the manufacturer’s rebate to qualify for financing?

Questions About Other Promotions
Other special promotions include high trade-in allowances and free or low-cost options. Some dealers promise to sell the car for a stated amount over the dealer’s invoice. Asking questions like these can help you determine whether special promotions offer genuine value.

• Does the advertised trade-in allowance apply to all cars, regardless of their condition? Are there any deductions for high mileage, dents, or rust?
• Does the larger trade-in allowance make the cost of the new car higher than it would be without the trade-in? You might be giving back the big trade-in allowance by paying more for the new car.
• Is the dealer who offers a high trade-in allowance and free or low-cost options giving you a better price on the car than another dealer who doesn’t offer promotions?
• Does the "dealer’s invoice" reflect the actual amount that the dealer pays the manufacturer? You can consult consumer or automotive publications for information about what the dealer pays.
• Does the "dealer’s invoice" include the cost of options, such as rustproofing or waterproofing, that already have been added to the car? Is one dealer charging more for these options than others?
• Does the dealer have cars in stock that have no expensive options? If not, will the dealer order one for you?
• Are the special offers available if you order a car instead of buying one off the lot?
• Can you take advantage of all special offers simultaneously?

You’re not limited to the financing options offered by a particular dealer. Before you commit to a deal, check to see what type of loan you can arrange with your bank or credit union.

Once you decide which dealer offers the car and financing you want, read the invoice and the installment contract carefully. Check to see that all the terms of the contract reflect the agreement you made with the dealer. If they don’t, get a written explanation before you sign. Careful shopping will help you decide what car, options, and financing are best for you.

The Low-Down on High Octane Gasoline

Are you tempted to buy a high octane gasoline for your car because you want to improve its performance? If so, take note: the recommended gasoline for most cars is regular octane. In fact, in most cases, using a higher octane gasoline than your owner's manual recommends offers absolutely no benefit. It won't make your car perform better, go faster, get better mileage or run cleaner. Your best bet: listen to your owner's manual.

The only time you might need to switch to a higher octane level is if your car engine knocks when you use the recommended fuel. This happens to a small percentage of cars.

Unless your engine is knocking, buying higher octane gasoline is a waste of money, too. Premium gas costs 15 to 20 cents per gallon more than regular. That can add up to $100 or more a year in extra costs. Studies indicate that altogether, drivers may be spending hundreds of millions of dollars each year for higher octane gas than they need.

What are octane ratings?

Octane ratings measure a gasoline's ability to resist engine knock, a rattling or pinging sound that results from premature ignition of the compressed fuel-air mixture in one or more cylinders. Most gas stations offer three octane grades: regular (usually 87 octane), mid-grade (usually 89 octane) and premium (usually 92 or 93). The ratings must be posted on bright yellow stickers on each gasoline pump.

What's the right octane level for your car?
Check your owner's manual to determine the right octane level for your car. Regular octane is recommended for most cars. However, some cars with high compression engines, like sports cars and certain luxury cars, need mid-grade or premium gasoline to prevent knock.

How can you tell if you're using the right octane level?
Listen to your car's engine. If it doesn't knock when you use the recommended octane, you're using the right grade of gasoline.

Will higher octane gasoline clean your engine better?
As a rule, high octane gasoline does not outperform regular octane in preventing engine deposits from forming, in removing them, or in cleaning your car's engine. In fact, the U.S. Environmental Protection Agency requires that all octane grades of all brands of gasoline contain engine cleaning detergent additives to protect against the build-up of harmful levels of engine deposits during the expected life of your car.

Should you ever switch to a higher octane gasoline?
A few car engines may knock or ping - even if you use the recommended octane. If this happens, try switching to the next highest octane grade. In many cases, switching to the mid-grade or premium-grade gasoline will eliminate the knock. If the knocking or pinging continues after one or two fill-ups, you may need a tune-up or some other repair. After that work is done, go back to the lowest octane grade at which your engine runs without knocking.

Is knocking harmful?
Occasional light knocking or pinging won't harm your engine, and doesn't indicate a need for higher octane. But don't ignore severe knocking. A heavy or persistent knock can lead to engine damage.

Is all "premium" or "regular" gasoline the same?
The octane rating of gasoline marked "premium" or "regular" is not consistent across the country. One state may require a minimum octane rating of 92 for all premium gasoline, while another may allow 90 octane to be called premium. To make sure you know what you're buying, check the octane rating on the yellow sticker on the gas pump instead of relying on the name "premium" or "regular."

HYPERTHERMIA (Heatstroke)

Problem : Children die each year from heatstroke, after being left alone in a vehicle.

You live by your daily routine and it helps you get things done. Be extra careful, though, if you have to change any part of that routine. This is more likely to happen when you, or caregiver who helps with your children, forgets that a child is in the back seat. This can and does happen when you break a well-established routine.

Disasters happen quickly
At other times, you are on your way home and realize you need to stop in at the store and pick up one or two things for dinner. So, you leave your child unattended, thinking, "I'll just run into the store for a minute." Even cool temperatures in the 60s can cause the temperature to rise well above 110° Fahrenheit inside your car. The inside temperature can rise almost 20 degrees within the first 10 minutes.

Some children die in hot cars after climbing into an unlocked vehicle without an adults' knowledge. Once in the vehicle, they may become confused by the door opening mechanism or trapped in the trunk, and unable to get out before heatstroke occurs.

Prevention Tips :

• Never leave a child unattended in a vehicle.
• Do not let your children play in an unattended vehicle. Teach them that a vehicle is not a play area.
• Never leave infants or children in a parked vehicle, even if the windows are partially open.
• Make a habit of looking in the vehicle - front and back - before locking the door and walking away.
• If you are dropping your child off at childcare, and normally it's your spouse or partner who drops them off, have your spouse or partner call you to make sure the drop went according to plan.
• Ask your childcare provider to call you if your child does not show up for childcare.
• Do things to remind yourself that a child is in the vehicle, such as




Writing yourself a note and putting the note where you will see it when you leave the vehicle;

Placing your purse, briefcase or something else you need in the back seat so that you will have to check the back seat when you leave the vehicle; or

Keeping an object in the car seat, such as a stuffed toy. When the child is buckled in, place the object where the driver will notice it when he or she is leaving the vehicle.

• Always lock vehicle doors and trunks and keep keys out of children's reach. If a child is missing, check the vehicle first, including the trunk.
• If you see a child alone in a hot vehicle, call the police. If they are in distress due to heat, get them out as quickly as possible. Cool the child rapidly. Call 911 or your local emergency number immediately.

What you need to know, now:

• Vehicles heat up quickly - even with a window rolled down two inches, if the outside temperature is in the low 80s° Fahrenheit, the temperature inside a vehicle can reach deadly levels in only 10 minutes.
• Children's bodies overheat easily, and infants and children under four years of age are among those at greatest risk for heat-related illness.
• Children's bodies absorb more heat on a hot day than an adult. Also, children are less able to lower their body heat by sweating. When a body cannot sweat enough, the body temperature rises rapidly.

• In fact, when left in a hot vehicle, a young child's body temperature may increase three to five times as fast an adult. High body temperatures can cause permanent injury or even death.

Dangers of extreme heat :

• Symptoms of heatstroke : Warning signs vary but may include: red, hot, and moist or dry skin, no sweating, a strong rapid pulse or a slow weak pulse, a throbbing headache, dizziness, nausea, confusion, being grouchy, or acting strangely.
• If you see a child alone in a hot vehicle, call the police. If they are in distress due to heat, get them out as quickly as possible. Cool the child rapidly.

Frequently asked Question about Smog Check Program

Q What are the environmental benefits of the Smog Check Program?
A The Smog Check Program has greatly reduced air pollution created by millions of cars in California. According to the California Air Resources Board, the program removes about 400 tons of smog-forming pollutants from California’s air every day.

Q Is my vehicle required to get a Smog Check?
A Your vehicle needs a Smog Check if it is more than six model years old and the model year is 1976 or newer. (This does not include diesel vehicles, motorcycles, electric and hybrid vehicles, and two-cylinder engine vehicles.)

Q How can I help my vehicle pass a Smog Check?
A Performing proper and regular vehicle maintenance according to your owner’s manual, and not tampering with the emissions control equipment are keys to passing Smog Check.

Q How often does my vehicle have to be tested?
A Your vehicle must be tested every other year. A Smog Check is also required if you sell your vehicle and it is more than four model years old. Some vehicles may require a Smog Check at a Test-Only or Gold Shield station.

Q What happens if my vehicle fails a Smog Check?
A In order to complete your registration, you will need to obtain the repairs necessary for it to pass its Smog Check retest. Before beginning repairs, find out if you are eligible for our Consumer Assistance Program (CAP).

Q What is a Test-Only station?
A Test-Only stations are licensed Smog Check stations that are only allowed to test cars. State law prohibits them from making repairs.

Q What is CAP and how do I qualify?
A The Consumer Assistance Program (CAP) provides financial assistance to repair or retire a vehicle that fails a Smog Check.

Repair Assistance — If your DMV renewal notice requires a Smog Check at a Test-Only or Gold Shield station, you may qualify for up to $500 in repair assistance once you pay the first $100 in repair costs. You may also qualify if your income is within certain levels, regardless of where you got your Smog Check. If you qualify based on income, a $20 co-pay is all that you need.

Vehicle retirement — If you feel your car is not worth repairing, the State may buy the car from you for $1,000 and have it scrapped at a local dismantler.

Q What is a Gold Shield station?
A Gold Shield stations are licensed Smog Check stations that meet certain performance criteria in order to test and repair all cars. They also provide repairs on vehicles that qualify for financial assistance under the Consumer Assistance Program (CAP).

Q How will I know if I need to take my car to a Test-Only or Gold Shield station?
A You will be notified on the registration renewal notice sent by the California Department of Motor Vehicles (DMV) if your vehicle must be inspected at a Test-Only or Gold Shield station.

Reducing greenhouse gas emissions

For every litre of petrol used in a motor vehicle, 2.3 kilograms of carbon dioxide (CO2 ), a major greenhouse gas, is released from the exhaust. The Australian transport sector accounts for around 76 million tonnes of Australia's total net greenhouse gas emissions, representing 13.5 per cent of Australia's total emissions.

Emissions from different fuels

Fuels differ in the amount of carbon and energy they contain as well as other characteristics, with implications for fuel economy and greenhouse emissions. The table below lists the amount of CO2 emitted from the exhaust for each litre of a particular fuel covered by the calculator.

CO2 Tailpipe Emissions/Litre of Fuel Consumed

Fuel Type CO2 Emissions

Petrol 2.3 kg
LPG 1.6 kg
Diesel 2.7 kg

It might seem odd that a greater weight of emissions is produced than the weight of a litre of fuel, but this is because of the addition of oxygen from the atmosphere to the fuel during combustion to form CO2.

This is not the end of the story because it also matters how much fuel is consumed to travel a given distance. LPG has lower greenhouse emissions per litre of fuel consumed than petrol, but also has a lower energy content. Therefore equivalent vehicles tend to consume more of LPG than petrol to travel a given distance. In the case of diesel, its greenhouse emissions per litre are higher than petrol, but engines designed to operate on diesel tend to be far more fuel-efficient than petrol engines. To be sure that one vehicle has lower greenhouse emissions than another use the calculator provided.

You can make a difference

Purchasing a vehicle with low fuel consumption and driving it efficiently can make a real difference to the amount of greenhouse gas emissions it produces. The following table gives an indicative guide to annual CO2 tailpipe emissions from petrol vehicles travelling 15,000 kilometres annually.

CO2 Tailpipe Emissions from Petrol Vehicles

Fuel Consumption Annual CO2 Emissions

6 L/100km 2160 kg
8 L/100km 2880 kg
10 L/100km 3600 kg
12 L/100km 4320 kg

Money Doesn't Grow on Trees, But Gasoline Might

Researchers have made a breakthrough in the development of "green gasoline," a liquid identical to standard gasoline yet created from sustainable biomass sources like switchgrass and poplar trees.

George Huber poses with a vial of green gasoline compounds.

Reporting in the cover article of the April 7, 2008 issue of Chemistry & Sustainability, Energy & Materials (ChemSusChem), chemical engineer and National Science Foundation (NSF) CAREER awardee George Huber of the University of Massachusetts-Amherst (UMass) and his graduate students Torren Carlson and Tushar Vispute announced the first direct conversion of plant cellulose into gasoline components.

In the same issue, James Dumesic and colleagues from the University of Wisconsin-Madison announce an integrated process for creating chemical components of jet fuel using a green gasoline approach. While Dumesic's group had previously demonstrated the production of jet-fuel components using separate steps, their current work shows that the steps can be integrated and run sequentially, without complex separation and purification processes between reactors.

While it may be five to 10 years before green gasoline arrives at the pump or finds its way into a fighter jet, these breakthroughs have bypassed significant hurdles to bringing green gasoline biofuels to market.

"It is likely that the future consumer will not even know that they are putting biofuels into their car," said Huber. "Biofuels in the future will most likely be similar in chemical composition to gasoline and diesel fuel used today. The challenge for chemical engineers is to efficiently produce liquid fuels from biomass while fitting into the existing infrastructure today."

For their new approach, the UMass researchers rapidly heated cellulose in the presence of solid catalysts, materials that speed up reactions without sacrificing themselves in the process. They then rapidly cooled the products to create a liquid that contains many of the compounds found in gasoline.

The entire process was completed in under two minutes using relatively moderate amounts of heat. The compounds that formed in that single step, like naphthalene and toluene, make up one fourth of the suite of chemicals found in gasoline. The liquid can be further treated to form the remaining fuel components or can be used "as is" for a high octane gasoline blend.

"Green gasoline is an attractive alternative to bioethanol since it can be used in existing engines and does not incur the 30 percent gas mileage penalty of ethanol-based flex fuel," said John Regalbuto, who directs the Catalysis and Biocatalysis Program at NSF and supported this research.

"In theory it requires much less energy to make than ethanol, giving it a smaller carbon footprint and making it cheaper to produce," Regalbuto said. "Making it from cellulose sources such as switchgrass or poplar trees grown as energy crops, or forest or agricultural residues such as wood chips or corn stover, solves the lifecycle greenhouse gas problem that has recently surfaced with corn ethanol and soy biodiesel."

Beyond academic laboratories, both small businesses and Fortune 500 petroleum refiners are pursuing green gasoline. Companies are designing ways to hybridize their existing refineries to enable petroleum products including fuels, textiles, and plastics to be made from either crude oil or biomass and the military community has shown strong interest in making jet fuel and diesel from the same sources.

"Huber's new process for the direct conversion of cellulose to gasoline aromatics is at the leading edge of the new ‘Green Gasoline' alternate energy paradigm that NSF, along with other federal agencies, is helping to promote," states Regalbuto.

Not only is the method a compact way to treat a great deal of biomass in a short time, Regalbuto emphasized that the process, in principle, does not require any external energy. "In fact, from the extra heat that will be released, you can generate electricity in addition to the biofuel," he said. "There will not be just a small carbon footprint for the process; by recovering heat and generating electricity, there won't be any footprint."

The latest pathways to produce green gasoline, green diesel and green jet fuel are found in a report sponsored by NSF, the Department of Energy and the American Chemical Society entitled "Breaking the Chemical and Engineering Barriers to Lignocellulosic Biofuels: Next Generation Hydrocarbon Biorefineries". In the report, Huber and a host of leaders from academia, industry and government present a plan for making green gasoline a practical solution for the impending fuel crisis.

"We are currently working on understanding the chemistry of this process and designing new catalysts and reactors for this single step technique. This fundamental chemical understanding will allow us to design more efficient processes that will accelerate the commercialization of green gasoline," Huber said.

Car Sharing

The primacy of car-based mobility has become a widespread problem in most cities in the world. In Australia, the situation is no different, as the car has an even more dominant role than in European cities. In most of the countries, transport is the fastest growing sector contributing to greenhouse gas emissions. Emissions from transport are second in magnitude only to the stationary energy sector. Enormous amounts of land and capital are bound up with cars, roads and parking space. This is a result of high levels of private car ownership. Although in medium and high-density urban areas many people walk, cycle and use public transport, there are occasions when they still see a need for some car travel. This is the 'mobility gap' that car sharing seeks to all.


This report describes the concept of car sharing. Its purpose is to identify car sharing organisations in other countries and to examine the preconditions required to establish and run a car sharing organisation (CSO) in order to examine the countries conditions as a basis on which to encourage local initiatives. At an anecdotal level, car sharing is known to exist in a number of cities. For example, approval was granted to a high-rise residential development to operate a car sharing scheme through a local car provider as a substitute for not providing on-site car parking. Other CSOs are small-scale and none is known to be linked formally to public transport providers.

Car sharing is one of a number of mobility strategies, which solves some car ownership problems and problems associated with high car-reliance.

In the primary layer, individuals gain the benefits of private cars without the costs and responsibilities of ownership. Specifically, car sharing allows a member (such as a household or business) to access a meet of shared cars and other types of motor vehicles as needed, paying a usage fee each time. This removes high fixed costs such as registration and third-party insurance, as most costs become both variable and lower. Vehicles are available to members more or less as required for any length of time (from one hour, up to several weeks or more) and at many points (dozens of locations in a city or even in other cities). So, instead of buying a car, people and/or companies, share a meet of vehicles with usage costs dependent on the kilometres travelled and the period of time for which the vehicle is booked. In the second layer, car sharing helps the community reduce the number of trips and distances travelled by private cars. In the third layer, urban communities gain space for productive uses when space currently occupied by roads and parking is not expanded and communities also experience less air and noise pollution.


Car sharing should not be confused with car pooling, which is more accurately termed 'ride-sharing'. In car pooling, owners of cars provide rides to other passengers in a more or less organized way, on a regular or irregular basis. It requires mutual agreement and trust and is generally not suitable for organising as a for-profit business.

The opportunity remains, however, to systematically develop appropriate indicators and an agreed methodology to compare different car sharing schemes.

Some potential indicators include:

• number of vehicles/members (total members)
• reduction in private motor vehicle kilometres travelled (VKT)
• CO2 emissions reduced
• number of cars replaced
• increase in public transport use
• increased time walking and cycling
• area/kerbside distance of parking saved with opportunity for improved re-use, e.g. as dedicated cycleway, parkland and/or open space
• more affordable housing or other savings in developments, e.g. saving space and costs of parking and improving amenity.

Benefits to individuals involved in car sharing :

The following are some of the key reasons individuals may choose to be involved in a car sharing organization:

• Economic : significant reduction of costs as opposed to owning a motor vehicle, including no need for private parking space and the opportunity to redeploy household expenditure that would typically have been devoted to the sunk costs associated with motor vehicle ownership.
• Convenience : no administrative effort or time expenditure on insurance, purchase and sale, repairs, permits etc.
• Improved access: enhanced mobility options, including access to multiple types of vehicle resulting in a choice of the most economically sensible transport mode.