Recs

0

Urban Cowboys and Car Insurance

We could all use a break on our car insurance costs. But are you willing to leave your desk job and go work on a farm?

Apparently many inner-city dwellers are. From Brooklyn to downtown Portland, Ore., drivers fraudulently claim that their cars are used exclusively in the pursuit of agricultural excellence. The reason? The farming discount gives car owners a sweet break on their insurance premiums if their vehicle is used on a farm. The price break for rural autos makes sense -- cornfield fender benders and theft are rare.

Industry experts say that ratings abuses like the fake-farming discount cost insurers more than $13 billion in lost revenue. While you might not be shedding a tear for State Farm's lost sales, you should be a bit miffed that the actions of dishonest drivers end up padding your car insurance tab.

If you're looking for a legitimate price break on your car insurance, consider the following:

  • Buy insurance from the same company that handles your homeowner's or renter's insurance.
  • Take a defensive-driving course.
  • Use an approved (by your insurer) antitheft device.
  • House your car in a garage vs. the street.
  • Mention membership in some professional association, and see if it provides bulk business to the insurer.
  • If a teen is on your policy, encourage her to have a high grade-point average.
  • And, if your Lexus really is only used on a farm, let your agent know.

For more ideas, check out our Insurance Center.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 508750, ~/Articles/ArticleHandler.aspx, 11/23/2014 6:13:13 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dayana Yochim
TMFSchool

Today's Market

updated 1 day ago Sponsored by:
DOW 17,810.06 91.06 0.51%
S&P 500 2,063.50 10.75 0.52%
NASD 4,712.97 11.10 0.24%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes


Advertisement