How to save on insurance costs when buying a new car

When you buy a new car, you want to find ways to save on car insurance. There are many ways to save on the cost of your insurance when you buy a new car.

Check car rating

Insurers charge more for cars that have high claims rates, regardless of the owner’s driving history. Some charge you less for collision and comprehensive coverage if your car scores well for durability and safety. Check the statistics about the news because you want before buying.

Increase your deductible

If you can afford it, consider increasing your deductible. The idea is that you can be prepared to pay for the damages yourself, so the insurance company doesn’t have to do it in the event of an accident. They like this. So if you can do it and transfer the risk to yourself, then you could lower your premiums by as much as 40%. Then you can take part of those savings and put them in an emergency fund, which will continue to earn.

Reduce coverage for old cars

If you have an old car that you are replacing with the new car, you should reduce the amount of collision coverage you have. The reason for this is that insurance companies will not pay more to repair a car than the car is worth.

So if you have an older car and the damage is $ 12,000, but the blue book value of your older car is only $ 10,000, they won’t repair the car and will probably give you the $ 10,000 instead. .

Cars older than five years, based on value, but not worth the collision and Comprehensive insurance coverage. Remember that each year of depreciation decreases the maximum claim you can make with collision coverage.

Use the same company

If you already have a car and are preparing to buy a new one, be sure to use the same company to get your policy. Insurance companies will give you discounts if you put more than one on the same policy. Often times, you can get up to 15% off the policy for doing this. The same is true if you combine your car insurance with your home insurance.

Avoid quotas

If you can avoid it, don’t pay in monthly or quarterly installments. If you can afford it, pay your premium in a lump sum. Insurance companies tend to charge additional fees if you pay premiums in monthly or quarterly installments.

Better credit score

Insurance costs are strongly tied to your credit history and insurance claims. In many states, your credit score directly impacts the rates you are given. You should review your credit score thoroughly to make sure everything is correct and there are no mistakes.

If you have bad credit, work hard to get it back consistently as you pay bills on time, repair debt, etc. Then come back each time your score improves to ask about the lower rates from your insurance company.