Car Insurance: 10 ways to save money on car insurance [Detailed]9 min read
Car Insurance – Getting a new planned vehicle is quite difficult even when you have the cash at hand.
This is because before you can be able to get your desired car, you need to check the model that contains almost all you needed in a car.
Besides that, you equally need to check your budgeted money to ensure that you can purchase the exact car you intend to buy.
Moreover, you should also check the maintenance rate and the power consumption of that vehicle via the energy (fuel) consumption and others.
Furthermore, when comparing the car you wish to buy, it’s important to check the auto insurance that you can get with such a model of car that you already have in mind to purchase.
Research shows that some car models tend to have special discount rates while purchasing car insurance for such car models.
Because of this, car insurance companies take all this (the type of car, the model, the manufacturer, your location, your driving record, etc.) into consideration while issuing you a premium auto insurance policy.
There are several ways you can save money when purchasing a car insurance policy for your vehicle and TheYoungBoss has elucidated them here.
Although car insurance policy is compulsory in some states in the U.S, we discussed how you can set auto insurance rates and other things you can do to eliminate much cost while purchasing your auto insurance policy. Let’s get started…
10 ways to save money on car insurance
- Purchase and renew your car insurance in full
- Identify yourself with your auto insurance company
- Consider buying cars with a high discount car insurance rate
- Buy other insurance policies alongside your auto insurance
- Compare other car insurance companies
- Renew your car insurance policy yearly
- If you must get a loan, make it a short terms loan
- Only include ad-dons that you need
- Buy your car insurance policy from cheap insurance companies
- Only go for car insurance that you can afford
#1. Purchase and renew your car insurance in full
When purchasing a auto insurance policy for your new car, some car insurance companies may likely give you the option to pay the bill over a long time by breaking the total balance into months.
Although this may sound nice in our hearing, in the long run, the individual that requests the car insurance will end up paying extra money compared to the initial cost of the auto insurance.
We recommend paying your car insurance in full while purchasing new auto insurance or while renewing your auto insurance policy.
The auto insurance company you’re registering with will sometimes give you a discount just because you paid everything in full.
Also renewing your auto insurance policy every year will as well grant you to qualify for some level of discount; this is because the auto insurance company now regards you as a core partner.
#2. Identify yourself with your car insurance company
Because the auto insurance company you’re registering is agreeing to pay for any uncertainty that will happen to your car within the registered period, they equally like to track some of the movements you make with your vehicle.
Over time, we have noticed that some individuals that allow their auto insurance company to track them usually get some discount rate from their insurer.
Moreover, your driving habits matter a lot while registering with any auto insurance company. Currently, a lot of auto insurance companies have telematics devices that they use to track your driving activities; how you apply the brake, how to control your steering, how you obey traffic lights, etc.
So maintaining a good driving record will as well attract some discount rates for your auto insurance policy.
#3. Consider buying cars with a high discount car insurance rate
The price of the auto insurance policy you’re purchasing will be determined by the model and the car product that you’re using. When buying your car, consider all this; so that you’ll not end up borrowing money just to purchase an insurance policy for your car.
Always check your pocket when planning for your new car, especially if you reside in any region in the U.S. There are several lists of cars with high discount rates when purchasing an auto insurance policy for such vehicles.
If you’re in the category of people that don’t check for pricing while making payment, you can purchase any model of car, since you know that getting such a car insured will never be an issue for you.
Again if you are purchasing costly cars, have in mind that you’ll surely need a premium auto insurance policy for such products – because when life calamities approach you, don’t expect the mini auto insurance policy to get you covered at this time.
#4. Buy other insurance policies alongside your car insurance
Over time we have noticed that when you purchase other insurance policies from the same insurance company that will get your new car insured, they will give you premium discounts for being their trust partner and sponsor.
In our everyday life, when you purchase goods or products in large quantity they normally give us discount; the same thing also happens in getting insurance policy for yourself.
Do all you can to eliminate unnecessary policies that your auto insurance company may likely add to your cart while purchasing your auto insurance policy.
From our research, a lot of individuals from the United States of America who purchased their auto insurance policy alongside health insurance, life insurance, house insurance, etc. always get a huge discount rate.
#5. Compare other car insurance companies
Almost everyone in the United States today used to bargain price when pricing any product in the market. With the same ideology, it isn’t a bad thing if you take out time to compare the prices of auto insurance for your car model, using over 5 auto insurance companies.
In as much as these auto insurance companies will insure you for your new vehicle, they differ from the services they render and also their prices for those services they render to individuals.
We recommend users regardless of their region in the U.S to take out time to look for the best auto insurance company that will ensure all you will ever need at an affordable price.
In some of our previous articles on this website, we reviewed the top car insurance companies that will give you satisfactory insurance while partnering with them.
#6. Renew your car insurance policy yearly
When you renew your auto insurance policy yearly, the auto insurance company that gets you insured will mark you as a serious partner and it will attract some level of discounts to the profile you created with them.
Also if you renew their auto insurance policy early even before the expiration of your former subscription, some auto insurance companies like State Farm, Geico, etc. will automatically qualify you to enjoy certain discount benefits from their insurance company.
If you wish to upgrade your existing insurance plan at the end of the year, do well to notify your insurance company on time so that they will give you the benefit for their partners who renews their insurance policy before expiring and also who are premium subscribers.
#7. If you must get a loan, make it a short terms loan
Individuals who purchased costly car models can be given a short terms loan in their auto insurance policy; although it depends on the auto insurance company that you’re partnering with.
This short terms loan will give you access to recover from the huge expenses you made when purchasing your new car. Even when you are given this loan in your auto insurance policy, your auto insurance company will still be responsible to take care of any losses or crashes, or damage that may happen to you as an insured user.
On the other hand, applying for a long-term loan is very risky because uncertainty can happen in the long and your auto insurance will not be able to pay up your bills.
#8. Only include ad-dons that you need
The car insurance policy usually comes in assorted plans; we have the basic plan for low model cars, the premium package for cars with the high cost of maintenance, and other additional plans that you are allowed to select the exact things you want insurance company to cover for you.
Imagine including some unnecessary features that you may end up not using; guess what! It’s costing a serious increase in your already planned budget for your auto insurance policy.
Depending on how perfect you’re in your driving record, you can add emergency fuel supply, towing, etc. in your custom auto insurance policy.
Regardless of your region in the United States, we recommend that you only select the features that you will end up using within your insured period.
#9. Buy your car insurance policy from cheap insurance companies
In the United States today, there are several car insurance companies but amid all these insurance companies, there are some that have cheap insurance rates for their customers.
So while planning to get your car insured, take out time to research the web and find out the cheap insurance companies that offer the same policy as others.
This will help the user to save up some cash that he/she will use to maintain his car during that insured period.
#10. Only go for car insurance that you can afford
From our detailed research, we have noticed that a lot of users seek a premium auto insurance policy, and the reason for this is to make sure that if anything happens to their new car, they will be covered by their auto insurance company even without spending a dine.
But most times this category of auto insurance policy normally falls back to premium policy, and a lot of users will request for insurance loan from the insurance company that gets them insured.
In the long run, it usually affects the individual that purchased the premium insurance policy.
We know that you understand the 10 ways you can use to save up money while purchasing a car insurance policy for your new car.
Share this useful knowledge with your friends to enlighten them on what they should know before purchasing auto insurance for their vehicle.