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Which Car You Choose Affects Your Auto Insurance

HARTFORD, Conn., Dec. 30, 2002; If you're looking at new car models featured at January's North American International Auto Show, you should also be thinking about what kind of automobile insurance coverage you'll need and how you can get the best value for your premium dollar. While cars with safety devices typically cost less to insure, only one-third of adults responsible for making auto-purchasing decisions are aware that safety devices have a significant impact on their automobile insurance costs, according to a national survey recently conducted by The Hartford Financial Services Group .

The survey asked 879 adults responsible for car insurance purchasing decisions to rate those factors they thought had the greatest influence on automobile insurance costs. It also asked them to indicate what actions they had taken to get the most from their insurance premium payments.

"As with buying a car, it's important to get the best value for your insurance dollar. That means getting the coverages and services you need, while taking advantage of opportunities to save," said George Thacker, senior vice president, personal insurance marketing at The Hartford. "Unfortunately, people don't always know what they can do to influence their premium, and sometimes they are misinformed." For example, 11 percent of survey respondents said they had avoided purchasing a red or yellow car to save on insurance, when, in fact, color has no bearing, Thacker said.

The survey also showed inconsistencies between belief and action. In some cases, people don't always follow through on what they do know will help reduce their costs. In other cases they see little impact on their driving costs but take the action anyway:

-- Americans overwhelmingly believe maintaining a clean driving record has the greatest impact on saving on insurance costs, and more than 80 percent reported they had in fact maintained a good driving record. In fact, a good driving record usually does have a positive impact on insurance costs. -- Americans rank raising the deductible as having the second biggest impact, yet only about 40 percent actually do have higher deductibles. Raising the deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 percent to 30 percent, according to the Insurance Information Institute. -- While just over half the respondents believe that insuring homes and automobiles with the same company will significantly save premium dollars, more than three out of five actually do use a single company to insure both. Many insurers do discount both home and auto insurance when they write both for a customer. -- Only one in three respondents believe that reporting car safety features to their insurance company will have a great impact on their premium, yet nearly three-quarters have told their insurers they have these safety devices. Safety features such as anti-lock brakes, air bags and anti-theft devices often reduce insurance costs. -- Only one-quarter believes eliminating collision coverage on older cars has a significant influence, yet one-third has done so. Dropping collision does reduce premium. -- Significantly fewer - one in eight - think having teenagers take drivers' education will have a great impact, although 75 percent of those with teenagers say their children have taken such courses. Driver's education courses do reduce insurance premiums.

"Buying a car is a perfect time to ask questions about your insurance. Find out about your risks and the different coverages and make sure the insurance company has a good reputation for service and response," said Thacker. "You should also ask what kind of discounts and credits they offer and if there are other things you can do to get the most from your premium. Take advantage of the information to make whatever changes are appropriate for you. Finally, tell your agent about the safety devices installed in your car or if your teenager is on the honor role or has taken driver's education.

"All of these factors can be grouped together to have a significant impact on insurance premiums," he said.

The nationally representative study was conducted this summer by an independent online research company, Opinionsite, a Lieberman Research company. It has a margin of error of +/- 3.3 percentage points.

Since safety saves money and lives, Thacker offers these tips to help drivers this winter season: Maintenance/Preparation -- Clean windows both inside and out regularly. Make sure your wipers are in good condition and not streaking from poor blades. -- Check for sufficient anti-freeze. -- Clean headlights periodically to remove salt spray and improve night time visibility. -- Check your tires' tread to ensure good traction. "All season" tires are better than conventionals, but snow tires are the best of all. -- Be sure tire pressure meets auto and tire manufacturer's specifications. Too much pressure reduces traction; too little can cause damage to sidewalls. -- Carry a small bag of sand for applying under your wheel for traction if you get stuck in snow or ice. A small shovel can also be useful if you get stuck in snow or are "plowed" into a parking space.

On the Road -- Before starting out, remove snow and ice from the entire windshield, as well as from mirrors and side and rear windows. Brush loose snow from the car. Allow your heater/defroster sufficient time to warm up. -- In bad weather, slow down and get the feel of the road and the traction of your vehicle. Allow extra time for trips. -- Be aware that snow banks can create "blind" spots, preventing you from seeing pedestrians or cars entering from driveways or side streets. -- Look for shadows that can create cool spots on wet roads and take precautions. Bridges also freeze before road surfaces. -- Increase your following distances in winter. All auto, SUV and mini- van drivers should maintain a two-second-space cushion between themselves and the vehicle ahead. Space should be three seconds for a truck or bus; four seconds for a tractor trailer. Add one additional second for bad weather to leave room for emergencies. -- While vehicles with four-wheel and all-wheel drive move better in wet and slippery conditions, they don't stop better. They need the same space cushion as other vehicles in their class. -- Start up smoothly from a stop. -- Brake before a turn, not in it, and apply consistent pressure. -- If your car has anti-lock brakes, do not pump your brakes. Instead, apply firm, continuous pressure. Remember, anti-locks do not improve stopping distances on dry roads - they only improve control if you get to the point of wheel lock-up.