How can you reduce auto insurance premium on a brand new car?


When you buy a brand new car, auto insurance coverage for collisions, liability and even comprehensive insurance cannot be avoided. This is because damage repairs are usually very high for new cars, compared to older ones. Considering this, even auto insurance providers choose to keep the insurance premium high for brand new cars. Therefore car owners need to come up with alternative solutions to lower the insurance rates. Here are some of the ways that could be achieved.

Installation of safety mechanisms

The safer your car, lesser would be the chance that there will be auto insurance claims. So car owners should spend an extra bit to get safety mechanisms installed in the car. These include anti theft mechanisms, alarm systems, side air bags, navigation assistance and rear view alert systems, to name a few. Although there would be extra expenditure installing these systems, they will pay off in the long run, as the insurance rates will be lowered.

Club auto insurance with other policies

If you have an existing insurance policy for health or house, or another member in the family has auto insurance, it is a good idea to combine them. Multiple policies with the same provider will make you a preferred client and hence you will receive discounts that wouldn’t have been available otherwise.

Driving courses

Safer you are as a driver, lesser would be your auto insurance premium. There are several different ways of proving that you are responsible behind the steering wheel. You can go for driving certifications that will not only add brownie points but will also help you drive carefully and safely. Maintaining a clean record on the roads after all, helps the insurance rates in the long run anyway.

Lower mileage

Irrespective of whether your car is new or old, the chances of accidents are reduced if you drive less. So, lower mileage will always bring you attractive auto insurance rates. You can go for modern insurance schemes where special gadgets will be installed in the car to mark mileage as well as driving patterns of the car owner. If you are confident that you drive safely and wouldn’t drive a lot, getting these gadgets installed will qualify you for additional discounts.

Credit history

You may have a new car that would tempt you to drive fast. But, if your credit history is excellent, insurance providers will perceive you as a safe bet, someone, who is responsible on the road.