Car insurance is an essential part of owning and operating a car, but it’s also one of the most expensive parts of owning a car.
Luckily, if you’re smart about your insurance needs and do some research, you can find affordable new car insurance that still provides you with the protection you need against damage or theft.
Here are seven great ways to get the cheapest new car insurance possible so you can put more money towards making your payments on that brand-new car.
Comparison shop
The first step in getting affordable new car insurance is comparing prices and coverage.
To do this, you’ll need to find at least five different companies that offer new car insurance policies.
Be sure that you’re comparing all of the same coverages before you start filling out applications.
Once you have your list, it’s time to start calling each company and letting them know what kind of coverage you’re looking for and how much you want to spend each month.
For example, if you’re interested in having full-coverage new car insurance with a $500 deductible per accident, tell every company on your list about this.
They will give you an estimated monthly cost and then you can decide which one is cheapest without sacrificing coverage.
Consider usage-based insurance
Automobile insurance is a lucrative industry in the U.S., providing over $170 billion annually in premiums and compensation.
There are many ways to reduce your premiums, and if you have a new car insurance policy you may be eligible for usage-based insurance coverage, which bases your premium on how much you use your car.
Usage-based insurance programs offer discounts of up to 25% of a driver’s premium when they drive less than 7,500 miles per year and/or do not exceed seven miles per gallon.
If you’re looking to save some money, this could be worth it.
If you don’t have any accidents or moving violations for three years, consider raising your deductible: The average new car insurance claim costs around $2,000 but if you raise your deductible from $250 to $1,000 then that cost could drop down by half or more.
You would need at least a few years of being accident-free before making this switch though.
Look for discounts
It’s a good idea to look for discounts when you’re shopping around for new car insurance.
There are many ways you can save on your policy, and it doesn’t mean compromising on protection. One way is by using the company’s home, or other property coverage.
You may not have thought about this before but if you have one of these types of policies through your own insurer and they happen to be higher than what you pay for car insurance then why not use them? The savings will add up over time.
Another way to save money on new car insurance is by asking your agent what other discounts they offer (such as being an alumni or member of certain organizations) and then sign up.
Increase your deductible
One way to save on new car insurance is by increasing your deductible.
Increasing your deductible will decrease the amount of money you’ll have to pay in case of an accident.
But, if you’re involved in an accident, you’ll have to pay for more repairs yourself.
So think about how comfortable you are with that risk and how much money you want to save before deciding which is better for your needs.
Bundle your policies
If you have your new car insurance and other insurance policies with the same company, you can bundle them together.
This will often get you a discount on your policy premiums.
For example, if you have both your home and car insurance with State Farm, they offer an umbrella policy that will provide coverage for both in case one of these assets is damaged or destroyed.
Another way to get affordable new car insurance rates is to buy it before your current policy expires.
Typically, the rates are higher than what you’re currently paying due to increased risk.
By switching early, you’ll lock in those lower rates until your next renewal date.
Take advantage of technology
New car insurance is more complicated than it used to be, with new laws in place and new terminology.
It can be overwhelming for some people, but there are ways that you can take advantage of new technology and make your life easier:
• Use online tools like Google Maps or Waze when driving so you can find cheap gas stations and restaurants.
• Make sure you have a good credit score. Many companies will offer discounts if they see a good credit score on your application.
Additionally, this could help lower your monthly payments.
• Take care of any problems before they happen. One thing to think about is how far away from work do you need your car?
If you live close enough to walk or bike, then you might want to consider an alternate form of transportation as opposed to buying new car insurance on a vehicle that may only be used once per week at most.
Shop around
Buying new car insurance is a big decision. It’s important not only for your peace of mind, but also for financial reasons.
After all, you’re going to be paying this insurance bill every month until you own a new car again.
Find out which companies are offering discounts and shop around among different providers and compare rates and coverage options.
Conclusion
So there you have it, 7 ways you can get cheaper new car insurance.
If you have any other tips or advice, please leave them in the comments below.
If you want good coverage and peace of mind if anything happens, your policy will protect you.