Finding the Right Insurance Plan

By: Angela Roudez
State Farm Agent

Lawndale News Chicago's Bilingual Newspaper - BusinessI have been a State Farm Insurance agent for over 25 years and I can tell you there are some interesting aspects about insurance you may never have considered. In the beginning of my career, the most frequently asked question was, ‘why would certain cars cost more to insure than others?’ As part of my column I would like to impart some of the tricks of the trade to help you find a rate that works best for you.

Q: Why are certain cars more to insure than others?
That is an easy answer. The same reason some cars cost more than others. But, seriously, it is really based on so many different aspects of every make and model of a car, that there is not just one thing that determines this. However, you can use the price of a vehicle as a rule that the insurance will be more if the car is more expensive.
Nowadays, most people are keeping their cars longer.

Q: Why doesn’t the insurance go down as my car gets older?
Actually, in comparison to the newer cars that are coming out every year, your insurance is very low. But, since the insurance continues to cover your car it does not go down, because your vehicle and the insurance were matched together when you purchased it.

Q: Why does the insurance increase?
This is primarily due to the driving habits of the owner. For instance, if the driver is driving a longer distance now, than you were before, or if you received a ticket or had an accident. The other reason could simply be the rates for your vehicle increased, or the rates at the company increased. The good thing about having an older car is that you usually do not need full coverage. Full coverage includes comprehensive and collision, that’s basically theft and actual colliding with someone. When you take these two coverages off your policy you can save lots of money. However, this should not be done if you still owe someone money for your car or you have a newer car. If your car is completely paid off and over ten years old, consider getting liability only, it will save you lots of money.

Q: What about deductibles?
A: Another way to save money on your auto insurance is to carry higher deductibles. Twenty years ago, most people carried low deductibles, but insurance was less, and cars cost less. Today, with most cars starting at $30,000 having a $250 deductible covers just a small scratch on the car. The lower the deductible, the higher the insurance premium, remember and the higher the deductible, the lower the insurance premium. So when you have a higher deductible you save more money. I also believe the higher the deductible, the safer the driver. Also, when you have a higher deductible, any claim that falls under that deductible means you are responsible for getting the repairs done yourself. This is very important to remember before considering carrying a higher deductible. Because if you have a small scratch and you have a $1,000 deductible, then you will be responsible for getting it repaired. However, State Farm will refer you to a body shop to do the work, or you can go anywhere else you prefer. This is with any claim, but especially when you are responsible for paying for the claim. But, the best part of having a higher deductible is the money you save every six months on your auto insurance. Now, just drive careful and you will never have to give that deductible to anyone.

If you would like to learn more, visit me at or call 312-829-3135.

Comments are closed.