Saving pennies (or a lot more) on car insurance

With Maine starting to head toward fall, perhaps August would be a good time to review that automobile insurance policy and see if there are any real savings to be made. Yes, all Maine motorists are mandated to have insurance coverage, but perhaps there are ways to reduce the annual payment through careful strategic review and modification of your current plan.

Ben Franklin used to say, “a penny saved is a penny earned.” Reducing cash outflow by removing unneeded coverage can be a satisfying exercise, especially when real dollars can stay in your pocket. Here are some ideas for holding onto those pennies:

. Closely assess your automotive needs. Live without an automobile, if possible. Is carpooling an option? What about public transportation? In the Bangor area that comes in the form of red-and-black BAT buses. A monthly bus pass, good for every day of the month except Sundays, is only $34. Put another way, for significantly less than a monthly fuel expense, one can ride to the far reaches of the BAT network with no limitations on the number of rides. If your driving destinations coincide with the bus route, you are in business. Also note there is a bicycle rack on the front of each BAT bus; this will help extend your travel range in good weather.

. Select higher deductibles. Move from $200 to $500 deductibles or higher. Protect your interests from the big expensive accident or injury. Be willing to take some risk for lesser losses.

. Drop insurance coverage you do not need. Comprehensive or collision insurance probably makes no sense for an older vehicle. For an old clunker, the cost of the insurance and the higher deductible probably will exceed the value of the vehicle. Check the Kelly Blue Book, Edmunds.com, or some other resource for determining the real value of your vehicle. For a less scientific approach, check similar vehicles for private sale in this publication or in Uncle Henry’s. This will give a more realistic number for the Maine market. Your car may be worth much less than you think.

. Put the family teens on your policy. This will be much less expensive than putting them on their own policy. Good grades, good driving record, and other factors will help hold the rates down. Many young adults who are going to college or living at home can continue on your policy. Check out the details with your agent.

. Combine your auto insurance with your homeowners insurance. Or buy a policy from the same insurance company. Rates often are lower.

. Purchase a low-profile automobile. Yes, there is something wonderful about the two-seat sports convertible. That is, until it comes time to pay your auto insurance bill. These vehicles are involved in more accidents than the average auto and are very attractive to the average street corner car thief. Automobiles should attract very little attention, not unlike airline luggage. Fancier things get ripped off much more often in both instances. Check on the auto insurance rates of your dream car before you buy.

. Check for low-mileage discounts. Travel less. Less risk. Pay less insurance.

. Maintain a good credit rating. Insurance companies are becoming more and more focused on their customer’s credit rating in determining their automobile insurance rates.

. Shop around. Different companies charge different rates. Price is important but it isn’t everything. Service and accessibility are critical elements. Waiting on hold for an hour or so to get information or service on your policy is certainly not user-friendly. Balance these factors in making your choices.

The family automobile is the American way. There are four times the number of vehicles on Maine’s roads than there were in 1960. Our road and bridge infrastructure was never designed to handle this volume of traffic. Auto insurance, once optional, is mandatory.

Wise review and selection of appropriate auto insurance could save you a pretty penny. Ben Franklin would be proud.

Consumer Forum is a collaboration of the Bangor Daily News and Northeast CONTACT, Maine’s membership-funded nonprofit consumer organization. Individual membership costs $25; business rates start at $125 (0-10 employees). For help and information write: Consumer Forum, Bangor Daily News, P.O. Box 1329, Bangor 04402-1329.