Getting a new car – whether brand new or pre-owned – can be an exciting time. There’s a new look and feel, new features to explore, and don’t forget that new car smell. But that excitement can fade sometimes when you hear how the new car will impact the cost of your car insurance premiums.
Thank you for reading this post, don't forget to subscribe!While there are some factors that influence your insurance rates that you have less or no control over – like your age and the area you live in – there are definitely some steps you can take to make sure that new car doesn’t hike your rates.
In this article, the experts at PA Auto Insurance Outlet have put together a quick checklist for you of some of our favorite ways to help people save on insurance when they buy a new car.
Wrack up the discounts
There are lots of reasons insurance carriers and brokers will offer discounts. For example, insurance companies want to incentivize good driving, because that translates to less claims they have to pay out. For that reason, they will often offer discounts if you maintain a clean driving record for a certain amount of time, or if the young driver in your home has taken driving lessons.
Likewise, insurance brokers want to be your one-stop shop for all of your insurance policy needs, so they will often offer discounts for bundling multiple types of coverage, like auto, homeowner’s, and life.
Carriers and brokers also want to reward behavior that saves them time and money, so ask about discounts for setting up automatic payments, going paperless, or paying your whole premium in one lump sum annually.
Cut back on coverage
The old saying holds true – you get what you pay for. If you want to pay less, consider having an open conversation with your broker about exactly how much and what type of coverage you truly need for your new car.
Of course, you will still want to meet the minimum requirements of state law, and if you are financing your car there may be certain policy thresholds you have to meet. But if, for example, you’re buying a pre-owned car that doesn’t have a high market value, it may be possible to dial back on some things, like collision and comprehensive coverage.
Opt for a higher deductible
The costs involved in your insurance policy follow a balancing act between your premium – the amount that you pay either in one lump sum or in installments from month to month – and your deductible, which is the amount you would have to pay when you submit a claim before the policy coverage kicks in.
The higher your deductible, the lower your premium costs are. Be sure to talk with your broker about striking the right balance here, because while easing those monthly payments with a higher deductible can save you money, you don’t want to find yourself in a situation where you can’t afford the super high deductible you chose when you need to submit a claim.
Pick your new car wisely
Not all cars cost the same to insure. Expect to pay more if your new car is a sports car, or has a high rate for theft. Even something as seemingly simple as the car’s color can affect pricing. The basic rule of thumb is that the greater risk of theft or damage that is associated with the car, the more the policy will cost.
If you are in the market for a new car, don’t hesitate to get in touch with the professionals at PA Auto Insurance Outlet to learn how you can save on insurance!