Car insurance is one of the most important and also the most overlooked of our fixed costs to maintain our lifestyles. CNN Money notes that most states require owning car insurance to cover some liabilities.
Car insurance is a necessity because it covers not only you and the passengers of your own car but also the people who are in the other vehicle as well. Getting the best deal for your car insurance does require a bit of work, however. There are many things that you can and should do to “lawyer” your way into a better deal for your car insurance. We’re going to take a look at six things you ought to do to manage your car insurance costs.
1. Don’t settle for the first quote
Buying car insurance is no different from buying any other commodity or service. You wouldn’t simply fork out money on the first cable provider that came to you offering a package, why would you do that with insurance? Forbes mentions that getting multiple quotes is a necessity if you intend to save some money on your car insurance. At the very least you should get three quotes to get a ballpark figure. the more time you have, the more quotes you can collect and compare. Collecting quotes means going through multiple companies as well. You might encounter a few companies selling at lower rates through different agents, so it’s a necessity to ask around each of the agents you know. Most importantly, don’t go into this purchase blind. Ask questions to get an idea of the rates you’re looking at and done deal with agents that try to rush you to sign on a policy.
2. Do some research on higher deductibles
Progressive says that a deductible is the amount of money you pay after an accident to ensure that your vehicle is repaired. By leveraging higher deductibles, you could save a substantial amount overall. Higher deductibles mean that you have to pay less in coverage since the idea is that your deductible will be paying for some of the repairs on your car. The catch here is that while it means a lower value for the coverage, it also means that you may need to have money set aside to pave that deductible in case something happens. While it does allow you to pay less (sometimes significantly) in insurance costs, that money must be available if the vehicle does get into an accident. if you don’t have that deductible, the car is not going to be repaired, even if the policy covers it.
3. Change the type of insurance on old cars
Newer cars have a lot of value, so paying higher premiums for fully comprehensive insurance is a decent bet. if the car is damaged or stolen, fully comprehensive insurance usually covers the entirety of the cost of the vehicle. For older cars, however, the issue is slightly different. As Cash Money Life says, the issue isn’t only about whether you want to save money, but how you should balance your risk tolerance against your affordability. All insurance is a gamble; you’re taking out a policy to cover if something unforeseeable happens. If it happens to an older car, then it’s likely you’d be able to cover repairs on it, but for a newer vehicle, the repairs may be quite expensive. This is only a consideration if the vehicle is 100% owned by you, as companies that do financing usually require that the vehicle be comprehensively covered while the client still owes them for it.
4. Have a single insurance supplier
Since we’re talking about insurance, the statement about putting all of your eggs in one basket seems like a pertinent statement. However, when it comes to taking out cheap car insurance, all you need is the one basket, provided that it’s secure enough. If you intend to take out insurance with a company, doing some research on the company to ensure the financial stability of it can help you to decide on whether they’d be a company you’d choose to handle your business. If you buy multiple sets of insurance, say homeowners as well as vehicle, from the same supplier, many companies offer discounts since you’re a preferred customer bringing lots of business to their firm. Don’t overlook the importance of sticking with one solid company for all your insurance needs.
5. Good credit count in insurance
Credit scores are like disembodied spirits that haunt you way after you think they’re gone. It’s no different when it comes to insurance. All companies prefer clients that are responsible and pay on time. Good credit stems from ensuring that you meet all your financial obligations promptly. The majority of insurance companies use credit scores when determining insurance quotes, and better scores mean a better price for a premium.
6. Check insurance costs before purchasing a car
The tag on a new vehicle isn’t the only cost you need to consider when buying a new car. the cost for coverage from insurance is also something that needs to be contemplated. Insurance coverage for each make and model of the vehicle vary by supplier. Determining this cost beforehand can be crucial in figuring out whether buying a new car is worth it, or whether it’s better to go with something slightly less flashy but more affordable in the insurance department.
The bottom line is the focus
You might be spending a lot of money buying a new car, it’s true. The thing about vehicles, though, is that the final price you pay is what the value of the car is worth. Having an automobile that fulfills your needs but also has a manageable maintenance cost is where you want to be. You don’t want insurance to overshadow the value of the vehicle itself, and if you’re buying it through financing, that insurance cost can mount up significantly over the years that it has to remain fully comprehensive. Doing the research beforehand is a great way to ensure that the prices don’t become too much to handle.