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Government program could mean higher auto insurance for manyPosted On Tue, September 8, 2009
Many consumers recently had the opportunity to purchase new vehicles that use less gasoline with help from the government's Cash for Clunker's program. However, many of them may be dealing with higher auto insurance premiums.
The reason for this is that many consumers turned in vehicles that in some cases were nearly two decades old. Even with discounts of up to $4,500 under the government program, factors like higher monthly auto payments and insurance premiums will in many cases result in newfound costs for drivers, even in light of what are generally lower gasoline costs.
With that in mind, an Associated Press report recently offered some tips on how to hold down auto insurance premiums after buying a more expensive vehicle. Some of these tips include raising the deductible to at least $500, combining insurance premiums with the same company and keeping a good credit score.
The AP also warns that vehicles considered more prone to theft will end up costing more to insure. However, other recent reports have noted that thieves tend to favor older cars because they tend to have less sophisticated security features.
Another way to avoid higher auto insurance costs is to avoid behavior that is likely to cause an accident. The Insurance Information Institute recently warned that despite the heavy media focus on cell phone use and texting, drivers can be just at risk for an accident by eating behind the wheel or grooming.
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