After buying a new car your first reaction may be to take the car for a spin but before taking your new car for a spin you need to insure it. There are a few things you should know about insuring new cars that can help you save a significant amount of money. This article will elaborate on 5 auto insurance tips that can help you save time and money while insuring new cars.
Get the Right Car
If you haven’t already bought your car then you should keep in mind that the more you pay for your car the more the auto insurance company will charge you for premium. Expensive cars usually cost a lot to repair and insurance companies make sure that you pay a high premium to make up for this fact. If you are planning to buy a car then you should either consider getting a certified green car that is safe for the environment or you should get an affordable car that has basic safety features. If you have already bought a sports car then the best thing to do is to drive safe, drive slowly and install safety equipment so that the auto insurance company charges you a lesser premium when you renew your policy.
Get Safety Equipment
Most new cars are fitted with minimal safety equipment which is generally not enough. Before you insure your car you should install some optional safety equipment so that the auto insurance company gives you a good deal. The most basic safety equipment you should install is a good theft alarm that will prevent your car from being stolen. You should also install automatic seatbelts and automatic air bags since insurance companies give discounts to people who have at least two out of these 3 safety equipment.
Increase Out of Pocket Deductibles
Most new car owners are very careful about the way they drive and they ensure that their new car is serviced periodically. Since new car owners take very good care of their brand new cars it is safe to assume that these cars do not get into accidents often. If you want to significantly lower the amount of money you pay to auto insurance companies for premium then you should increase your out of pocket deductible amount to 40% or 50%. By setting the out of pocket deductible amount to $500 per accident you can save up to 20% on insurance premiums. You should not follow this technique if you are prone to get into accidents since when an accident occurs then you will have to pay up for repairing your car.
Opt for Comprehensive Liability Cover
By opting for comprehensive liability cover your auto insurance premium will increase by approximately $40 every year but this cover will protect your interests when your car is totaled during a natural calamity. Comprehensive cover is considered a must for new cars or expensive cars since this cover pays for repair and replacement if your car is damaged due to hitting an animal, due to vandalism or due to a natural calamity. This liability is especially important if there are wild animals in your area, if you live in an unsafe neighborhood or if you stay in an area that is prone to storms and earthquakes.
