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The Internet has revolutionized shopping for everything from cars to clothes. But what works for wares may be trickier when conducting more sophisticated transactions, like buying car insurance. Thats why there is still a case to be made for old-fashioned insurance agents. As you search for a new auto insurance agent, these tips from Nick Riley will help you find the right person for your needs. Finding an agent. When looking for an insurance agent, the best place to start is with people you know. Ask friends and family for referrals to good local car insurance agents. Still, the transaction does not have to be completely offline. The Internet does offer some easy ways of finding a local agent beyond the listings in the phone directory. Sites such as InsureMe.com help consumers through the application process and refer them to agents and discount program representatives. The search for a good insurance agent is similar to the hunt for a financial adviser or doctor. They need to be trustworthy and you should feel comfortable talking to them. Talk to them for a few minutes and find out if you think you can work with them. They are going to be finding out very private things about you in some cases. The trust factor is huge.

Reduce coverage for an older vehicle. If the economic downturn has forced you to hold on to a car thats held together by duct tape and prayer, make sure you are not insuring it for more than its worth. If your car is totaled, all your insurer will cover is the current value of the car. You can reduce your premium by 40% or more by getting rid of collision and comprehensive coverage. Trouble is, its not always easy to determine when its time to ditch this coverage. These days, even a 5-year-old car that originally cost $50,000 could still be worth a lot of money, says Nick Riley senior vice president for Fort Lauderdale Car Insurance

Here is a good rule of thumb from the Insurance Information Institute: Drop collision and comprehensive coverage if your vehicle is worth less than 10 times the premium. You can get an estimate of your vehicle’s current value at Kelley Blue Book, www.kbb.com. Raise your deductible. Increasing your deductible to $1,000 from $250 could reduce your monthly premiums by up to 40%, Nick Riley says. “You have to ask yourself, based on your current financial position, how likely can you come up with $500 or $1,000 in the event of an accident,” Cooper says. “If you can do it fairly easily, and you are a safe driver, you are probably better off raising your deductible.” Factor in the cost of insurance before buying a new car. Eventually, you are going to have to retire your junker, and car dealers will be delighted to help you find a replacement. They will probably shower you with incentives, too. What they probably will not tell you is how much your insurance costs will increase.

For instance, someone driving a 25-year-old beater might be able to skip coverage for damage to the car because the cost of the car insurance could be more than the car itself was worth. “The insurance company is going to err on the conservative side and ask you to carry it when it may not be feasible or make sense. An agent can guide you effectively,” says Riley. On the other side, not having enough car insurance coverage can also be costly. Riley says many people opt to go with the state minimums for liability because its much cheaper. “If you get into an accident and its your fault and you get a $300,000 judgment against you, a lot of people think the insurance company is going to pay that. But its just going to pay up to the liability limit and then you are on the hook for the rest,” says insurance agent Riley.

Compare rates for a teenage drivers policy. Instead of adding your child to your own insurance policy, you may save money by buying a separate policy for your teenager.Some large insurers do not want to take on the risk of covering a teenage driver and charge significantly higher rates as a disincentive, Insurers that specialize in insuring high-risk drivers may offer you a lower rate. But a separate policy is not always a better deal, says Nick Riley. Some insurers will give parents who have a good driving record a discount on their childs coverage, he says. And some are eager to cover teenage drivers because they want to keep them as long-term customers.Look into discounts. If you are working from home or taking public transpiration to work, you may qualify for a low-mileage discount. Insurers also offer discounts for policyholders with good driving records, longtime customers and policyholders who drive cars with specific safety or security features. You should be able to get a discount on the cost of covering that child.

Nick Riley is a expert in the car insurance industry visit Fort Lauderdale Insurance

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