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 insurance by purchasing a new car.

Check the car rating

Insurers pay more for cars that have a high accident rate regardless of the owner’s driving record. Some charge you less for collision and full coverage if your car performs well for durability and safety. Check the statistics on the new car you want before buying.

Raise your deductible

If you can afford it, consider increasing the deductible. The idea is that you can be prepared to pay for the damage yourself, so the insurance company doesn’t have to in case of an accident. They like this. So if you can do it and transfer the risk to yourself, you may be able to cut your premiums by up to 40%. So you can take part of those savings and put them into an emergency fund, still coming out on top.

Reduce the coverage of old cars

If you have an old car that you are replacing with a 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 value of your older car’s blue book is only $ 10,000, it won’t repair the car and will probably only give you $ 10,000.

The cars are over five years old, depending on their value, but not worth the collision is full insurance coverage. Remember that each year of depreciation decreases the maximum claim you are able to make with collision coverage.

Use the same company

If you already have a car and are preparing to buy a new car, be sure to use the same company to get your policy. Insurance companies will give you discounts if you put more than one car on the same policy. You can often get a 15% discount on the policy for doing so. The same applies if you combine your auto insurance with your home insurance.

Avoid the installments

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

Better credit score

Insurance costs are strongly linked to credit history and insurance credits. In many states, your credit score directly affects the rates you are given. You need to thoroughly review your credit score to make sure everything is accurate and there are no mistakes.

If you have bad credit, work hard to restore it systematically while paying your bills on time, repairing debt, etc … Then go back every time the score improves to ask for lower rates from your insurance company.

Source by Chaitanya Rane

One comment

  1. Victoria Addington

    It’s great to know some tips on how to save car insurance costs when buying a new car. I had no idea that companies will provide discounts when opting for the same policy. Since my sister is looking also for a provider for her new car, I guess I shall then follow your advice to select the same auto insurance provider.

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