Enter Your ZIP Code

Knowing What Keeps New Car Insurance Rates Down


In recent years new car insurance has become a necessity for car owners. Drivers would not be allowed to drive unless they apply and obtain coverage for their vehicle. For those who refuse to abide by these requirements, there are sanctions and legal punishments.

Many would still ask why auto insurance is required in every state for every automobile owner. The answer is simple – we do not know our future. Accidents do happen, and it can happen to anyone, anywhere, at any time. With the help of auto insurance, car owners can be prepared for such unfortunate events. An auto policy can save vehicle owners from terrible financial loss, if they become involved in an accident.

Now you know why new car insurance is required for drivers, the next thing you should find out is how to get the lowest prices. Before applying for automobile insurance, here are some things you need to think about in order to get affordable rates:

1.      Check the car – the car is one major factor insurance providers consider when evaluating premiums for potential clients. Make sure that your car is not identified as high risk to avoid expensive rates. Vehicles that are seen as high risk include sports cars, SUVs and two-door automobiles.

2.      Secure the vehicle’s storage and protection – if you are the type of car owner who likes to park his car around construction sites or without a closed garage, then you better change your ways first before applying for new car insurance. Insurance companies would tell you that your car has higher risks of getting damaged or stolen which might result to higher prices on your insurance policy. You may also perform security installations and upgrades to enhance your vehicle’s protection against car thieves.

3.      Think of a higher deductible – having a higher deductible puts you on an insurer’s priority list. They would certainly be glad in doing business with you because of your capacity to pay a large sum of money before they provide financial assistance in case of an accident. However, remember to state a deductible which you can actually afford to pay just in case.

4.      Be responsible at work and in handling finances – driving carefully has been advised to millions of car owners in all parts of the world. In addition to this, there are also other aspects where you need to be responsible enough. Your job history and financial situation tells a lot about what kind of person you are. If you keep these two things carefully, expect more affordable new car insurance premiums.