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Informed Shoppers Can Find Savings On Auto Insurance

    NEW YORK, May 24 With auto insurance rates on the rise for
the first time in several years, it's important that consumers take control of
their insurance-buying decisions, according to the Insurance Information
Institute (I.I.I.).

    The I.I.I. says that auto insurance rates will rise two to four percent in
2001 after several years of little or no increase.  Higher rates are the
result of increasing costs associated with providing medical care to people
injured in motor vehicle accidents, higher motor vehicle repair costs and
soaring jury awards.

    Smart consumers can reduce the cost of their auto insurance rates by
following these tips:

    * Shop around and compare prices.
      Insurance costs vary dramatically from company to company, so it pays to
      shop around.  Ask your friends, relatives and co-workers for the names
      of companies or agents they have had a good experience with.  You can
      also go on-line or get a list of insurers from your state insurance
      department.  And don't buy based on price alone -- pick a company or
      agent that has a reputation for good service.

    * Before buying a car, check insurance costs.
      Insurance premiums are based in part on the car's value, the cost to
      repair it, its overall safety record, and the likelihood of theft.
      Select a car that you can afford, in terms of its cost and the amount
      you will need to insure it.

    * Take a higher deductible.
      A higher deductible can lower the cost of insurance substantially.  For
      example, increasing your deductible from $200 to $500 could reduce your
      collision and comprehensive coverage cost by 15-30 percent.  Going to a
      $1,000 deductible can save you 40 percent or more.

    * Drop unnecessary coverages.
      Drop collision and/or comprehensive coverages on older cars.  In many
      instances it is not cost-effective to continue to buy these coverages
      as the value of your car depreciates.  Auto dealers, banks and buyer's
      guides can tell you the worth of cars.

    * Keep your credit clean.
      Your credit rating may affect what you pay for insurance.  And while
      this varies from state to state and company to company, drivers with a
      good credit history may be rewarded with a lower rate.

    * Ask about all available discounts.
      You might get a break if you car-pool to work, take a driver education
      course or a defensive driver-training course, or if you insure multiple
      cars with the same insurer.  Some companies also give discounts to
      students with good grades or for low mileage.

    And don't forget to drive safely.  Those with poor driving records are
seeing the highest increases in their auto rates.

    Consumers can obtain more information on how to lower their auto insurance
rates by accessing the I.I.I.'s Web site at http://www.iii.org or by calling
the National Insurance Consumer Helpline at 1-800-942-4242.