As we noted last day, buying a new car in time for the warm summer months, though exciting in theory, can often bring with it steep insurance premiums as a result of your shiny new wheels. As we were quick to acknowledge, however, insuring a new car can be less financially strenuous than you might think. By following these simple pointers in addition to the ones laid out in last day’s post, you’ll likely find that a stylish summer ride is more within your means than you might once have thought.
1. For most automotive insurance providers, a safer car means lower insurance rates. Beyond simply looking at statistical probabilities as to how much damage a given car is likely to dole out or receive in the event of an accident, they will also take into account factors like internal and external safety features. For this reason, it is important to make sure that all on-board safety features are accounted for when buying your car – from functional airbags, adjustable shoulder belts, power locks and anti-lock brakes to head restraints, traction control and all-wheel drive. Likewise, external factors can affect the safety rating that your car receives; parking it in a well-lit area or securely locked garage, for instance, might help to further reduce your premiums. Just remember – anything that serves to increase the safety of your car is likely to be of at least some help.
2. Practice discount awareness. Like the various safety features mentioned above, certain conditions offered by your insurance provider will often allow for further discounts and even lower premiums. In some cases, for instance, providers will include discounts on your automotive insurance if you’ve taken out other policies, such as a life insurance policy, with them as well. If nothing else, this serves as a reminder of the importance of shopping around for insurance before you buy into anything, making certain that you are aware of what each provider has to offer. You should also make sure to ask each individual provider for a list of their available discounts; having this handy will, in some cases, allow you to see exactly what you’re eligible for under various circumstances.
3. “Self-insure” where possible. In addition to high deductibles which will almost certainly entail lower premiums, you can often opt to remove certain elements of your insurance policy if you feel them to be unnecessary. Towing coverage, for instance, could be removed if you felt that your chances of frequently needing a tow were low enough to merit this decision, and a similar argument can be made for car rental coverage. At the end of the day, however, the message implied by these decisions is a simple but important one: be smart about your insurance and your driving, and you’re likely to reap the rewards in the long term.