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Congratulations! You’ve bought a new car and are satisfied that you’ve negotiated the best deal you could. Well, don’t stop negotiating now.
Shop for insurance the same way you shopped for your car – looking for the best deal and service you can find. Insurance polices are not made equal. In fact, policies and their prices differ significantly from one company to the next – as much as $523 for a six-month policy!
Insurance agents work on commission, so the more insurance they sell you the more money they make. To avoid buying more than you need, figure out the coverage you need before you speak with an agent. You don’t want to be over-insured, but you also want to ensure you have enough insurance to protect you and your loved ones.
Rates will vary depending on where you live, your age, the car you drive, your driving record and your credit history. People who are married generally pay less than people who are single and rates generally decrease as you age. Consider the follow steps to reduce your rate further:
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Take a defensive driving course. This can save you as much as 10%.
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Request membership discounts.
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Pay six months in full, twice a year, rather than paying to finance the premiums monthly.
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Buy a car with safety features such as an alarm, air bags, anti-lock brakes or automatic seatbelts.
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Maintain a clear driving record.
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Insure your vehicle with the same company you insured your home or other car with. This can save you 10 to 20%.
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Negotiate a multi-policy discount. Companies will often provide discounts to groups or associations that do business with them. Even families may qualify.
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Maintain your grades. College students with GPAs of 3.0 or higher are often eligible for discounts of as much as 25%.
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Retire. Let the agent know if you are retired. Since you will probably drive less, your premium will drop.
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Tell the agent if you have a college student going to school more than 100 miles away. You may qualify for a discount if you child lives too far away to borrow your car.
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Stay loyal. Some companies will reward you as much as 10% for doing business with them for one year or more.
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Increase your deductible. Reduce your premium from 15% to 30% and you could save $200 to $500. Increase the deductible to $1,000 and you could save 40% or more.
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Research to determine which cars are more expensive to insure because they are expensive to repair or are stolen often.
Getting the right insurance at the best price will help you to keep that new car glow a little longer.
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