Buying a car is not to fulfill a dream or to be happy with it. It’s about maintenance of the car and it’s papers, dealing with Car insurance quotes and be responsible also.
- 1 Free Car Insurance Quotes
- 2 Establish a budget and stick with it
- 3 Know your transportation needs
- 4 Know the proper purchase price
- 5 Know your options for financing
- 6 THE BASIC TYPES OF COVERAGE
- 7 GET THE BEST DEAL ON CAR INSURANCE QUOTES
- 8 Don’t always look for the cheapest.
- 9 Lower Your Risk
- 10 Lower the Price
- 11 Shop Around & Save More
- 12 Get Added As a Driver
- 13 FACTORS THAT IMPACT CAR INSURANCE RATES
- 14 The Bottom Line
- 15 Also, Read More
Free Car Insurance Quotes
First-time car owners have a lot to learn before making the final deal and taking off on the road to freedom. The car buyers have to think about the car model, brand, and a lot more. Car insurance quotes may not be the first thing that comes to the mind when making the final decision but it is very important.
It makes a great impact on the overall car value and the coverage you get for the damage during accidents.
So, before we jump onto some in-depth information about buying a car insurance, let’s know some basic tips about selecting your car itself.
Establish a budget and stick with it
The amount should be based upon the cash you have in liquid and the amount you can afford as monthly instalments. Look at your cost of living in all the more important areas like health insurance, food, and happy hours. Calculate all these factors and get how much you can pay as car payment, insurance, fuel etc. Go strict about your budget when buying a car or a car insurance.
Know your transportation needs
We all have different needs in mind when buying a car. For example, some of us would want to buy a car for commercial use while some may need it to commute between home and workplace, daily. It helps choose the best model and type of the car like compact, hatchback, sedan, SUV, etc.
Know the proper purchase price
Once you have decided what you need and what is your budget, it’s time you arrive at the purchase price. The price you pay as down payment is not only the price you pay for the car but also includes registration cost, car insurance, etc. Research about the best car dealers and get best deals with all the benefits that you can’t afford to miss.
Know your options for financing
Unless you are a millionaire and don’t want to save taxes, you’d prefer financing your purchase. This means you will spread the total value of the vehicle across a long period and pay the monthly payments. You can check out a wide range of calculators available to see how much you can afford.
THE BASIC TYPES OF COVERAGE
When buying a car for yourself or the family, protecting it is the primary step you should take. Getting the best suitable coverage for your automobile is the first step in the process and knowing the different types of coverage can help you make a better choice:
Collision – If you have a loan against your vehicle, this type of coverage is required as it pays to repair your car after an accident. When your vehicle is on loan, it belongs to the bank and hence it is required to avoid getting stuck with a wrecked car.
Liability – It may be the cheapest one available, but remember that this type of insurance offers only third-party personal injury, vehicle, or property damage, and death-related claims. Liability coverage is required in all but a few states.
Comprehensive – If there is a damage due to theft, vandalism, water, fire, etc., this coverage will take care of it. In case you have paid off your car loan, you may not need collision or comprehensive coverage.
GET THE BEST DEAL ON CAR INSURANCE QUOTES
The best way to make big savings on car insurance is by using comparison shopping of car insurance. Make sure you put a bit of time to get the best deals available to pick the top ones with a minimum premium.
Don’t always look for the cheapest.
While I am going to describe about the tips to save more on your car insurance plan, remember that getting the cheapest insurance plan isn’t always the best deal. You need to understand and be clear about the coverage and the benefits you expect with a car insurance policy.
Know a difference between a cheap and a smart car insurance plan. Weight your coverage and explore the options available in your budget. Compare multiple car insurance policies online in order to get the best car insurance deal.
Lower Your Risk
As mentioned, cheap car insurance isn’t necessarily the best car insurance deal but there are options available that you can opt to lower your insurance risk and get cheaper car insurance. You can make your car more secure using the following steps:
- Secure Your Car
- Fit alarm or immobilizer
- Use only certified security devices
- Drive Safely
- Be a low-risk driver
- Avoid taking insurance claims for minor damage
- Get a policy with an assessment of your driving with telematics
- Add a Second Driver
- Add a low-risk driver – even if they don’t drive usually
- Avoid breaking law pretending the second driver is the main driver
Lower the Price
There are many options available to help you reduce the price of your car insurance plan.
- Don’t pay for unwanted things
- Check for the coverage benefits with the insurance policy
- Get add-ons only if you need them like legal expenses cover
- Pay Annually
- Most of the companies offer discounts on annual premium payments.
- Buy Breakdown Coverage Separately
- Check if you really need a breakdown coverage. Include separately if you need.
- No Claim Bonus Benefits
- Get extra discount on premiums if you haven’t claimed for past five years
- Make sure to carry no-claim bonus when changing insurer
Shop Around & Save More
Research is the key to save more, whenever you are planning to buy something – whether fashion accessory or car insurance. The more time you spend on research, the more likely you are to get a better deal. Get quotes from 2-3 comparison sites and check their features.
Get Added As a Driver
We all have someone in the family who has a car insurance policy. Try to get added as a driver to their policy as it is the best way to obtain car insurance in a budget while enjoying the great benefits.
Benefits of getting added as a driver include:
More Discount – It gives you access to many more discounts. Since most first-time drivers don’t have home, it brings discounts if you are added as a driver on your guardian’s policy.
Proof of Prior – Companies consider first-time drivers high risk and you pay more premium for the insurance. Adding yourself as a driver is a shortcut around to get benefits of having a previous car insurance if you didn’t have one.
Low or No Down Payment – One of the greatest perks of being added onto an existing car insurance policy is low or possibly no down payment. Starting a new policy on your own requires one or two months’ down payment, which can be avoided by getting added as a driver.
FACTORS THAT IMPACT CAR INSURANCE RATES
In addition to the above-mentioned tips to reduce the car insurance prices, it is also great to know about the factors that make an impact on the rates:
Claims you take – The first and the most important thing for car insurance companies is the number of claims you have taken in the past. However, since you’re the first-time car buyer, you need not to worry about this but it is good to take care of the number of claims in the future. If you want to keep your rates low when you renew your policy, keep the number of claims that you file to a minimum.
Driving History – Car insurance companies take repeated traffic offenders as high-risk drivers. If you have been issued tickets for rash driving, driving under influence, etc., then get ready to pay higher premium on the car insurance.
Driving Habits – Whether or not you use your car for work, the number of miles you drive daily, and the distance between your home and work. All these factors make a great impact on the rates you get on your car insurance.
Credit Score – Of course, you are not going to apply for a loan, but credit score matters a lot when you’re buying your first car insurance as well. Bad credit increases the premium.
Age, Gender & Relationship Status – Younger and less experienced drivers with status “Single” are often quoted higher insurance rates. Males, unlike females, also have to pay a higher rate when buying car insurance as females are considered as more confident and safe drivers.
The Bottom Line
Shopping wisely when planning to buy an insurance claims can help you protect your health, your assets while paying minimum on the premium. So, make sure to put forth the effort on research and determine the type and amount of coverage that you need. Never pay for something that you don’t want in the policy. For example, if you have a separate health insurance, you may ask your insurer to make amendments, accordingly.
Also, make sure that you review and understand the “Terms & Conditions” of the policy before you sign on the dotted line. With appropriate research and planning, you’ll be pleased with the results and benefits you get with the car insurance From Car insurance quotes.