Consumers Could Pay More for Car Insurance with New "Cash for Clunkers" Program, According to InsuranceFusion.com

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Consumers taking part in the "Cash for Clunkers" program are instructed how to save money on car insurance with advice from Tom Costa of InsuranceFusion.com.

You should also look at the deductible amounts because that can impact car insurance premiums dramatically. In fact, raising the deductibles from $250 to $1000 could cut car insurance costs up to 40%

"Auto buyers participating in the new 'Cash for Clunkers' program should be aware of the financial impact to their auto insurance premiums" says Tom Costa, spokesperson for InsuranceFusion.com, an online auto insurance marketplace. He explains, "The new legislation recently signed into law by President Obama and referred to as the 'Cash for Clunkers' bill and now official known as CARS (Car Allowance Rebate System) will affect auto insurance costs. It's important to know how to make sure you're getting the best deal on car insurance in these difficult economic times." The CARS program lets consumers with older, gas-guzzling vehicles earn up to $4500 in rebate dollars. The catch is that consumers do not get the trade-in value of the vehicle, only the rebate, and only if their new car gets better mileage than the old one.

Costa continues, "Consumers that opt to participate in this program and get a new more fuel-efficient vehicle may think that their auto insurance premiums are sure to go up. It's important that consumers do their homework because there are insurance discounts of up to 10% if a consumer buys a hybrid vehicle and many insurers also offer 'Safe Car' discounts of 5% or more". Visit the Insurance Institute for Highway Safety at http://www.iihs.org to make sure the vehicle under consideration has a good rating. "You should also look at the deductible amounts because that can impact car insurance premiums dramatically. In fact, raising the deductibles from $250 to $1000 could cut car insurance costs up to 40%". He also notes, "Auto insurance prices can vary from car model to car model, so compare insurance quotes for the different vehicles under consideration." Additionally, Mr. Costa says, " Consumers should be aware that average premiums on a new policy are down from last year. If you haven't shopped your insurance in a while, you should. Visitors to our site save an average of more than $400 per year. The process is simple and only takes 15 minutes. We ask consumers to go to our website InsuranceFusion.com to compare car insurance quotes from many different companies and find out which vehicle and which company has the lowest insurance rates."

He concludes, "Even if a consumer chooses to stick with their current vehicle, they can still save money. Review your policy to see if you have driven less than in previous years, if so contact your insurance company. You may be eligible for a lower premium based on the number miles driven annually. Also know that insurance costs vary dramatically from company to company and from year to year. Since insurance rates are cyclical, it's smart to shop every year to make sure you're still getting the best price on car insurance."

About InsuranceFusion:
InsuranceFusion.com is owned and operated by Sequoia Interactive, Inc. InsuranceFusion brings trusted names together in one place to make insurance shopping easier. InsuranceFusion.com provides insurance quotes and a wealth of insurance articles and information for auto insurance, term life insurance, homeowners insurance and health insurance.

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