Insurance Rates
Once you’ve determined the car that best suits your needs and wants, you should also consider what type of insurance rate you will have to pay, as that can sometimes be a considerable percentage in relation to the car payment itself. Here again, you may need to reconsider what type of vehicle will work the best for you. Insurance premiums on a sports car will definitely be more expensive than on a family car. Another thing that may cause insurance rates to be higher is the frequency of theft of that particular model.
You can check here to see the cars that are at the top of the “Most Stolen” list. http://info.insure.com/auto/thefts/thefts301.html
I’m sure you already know that your driving record, age, marital status and where you live will affect your insurance rate, but there are several other things you can do to possibly lower your rate.
You can ask for higher deductibles. The deductible is the amount you must pay before the insurance company pays for anything. If you are willing to have a $500 deductible instead of a $250 deductible, then that will get you a better monthly insurance rate. By doing this you are assuming an extra $250 risk that you will only have to pay if you are in an accident. If you don’t have an accident, then the money you saved on your monthly premiums stays in your pocket.
Some insurance policies will duplicate the medical coverage you may already have through your employer or other source. Check into this, as there’s no reason to pay for something you don’t need.
I mentioned above that where you live will affect your insurance rate. If you are considering a move in the near future, from say, a rural address to one in a large urban area, then your insurance premiums could change dramatically when you send your insurance company your change of address.
How many miles you typically put on the vehicle will affect your insurance rate. If you commute 75 miles to work and 75 miles back home in the evenings, then your rate will be much higher than if you have a home office and only drive the car for pleasure and day to day necessities.
Almost every car out there today will have airbags, for which you should get a discount, but if your car also has automatic seatbelts, then tell that to the insurance company and ask if they will give you a discount.
Does your car come with any anti-theft devices? Are you planning to add some form of anti-theft device after you buy the car? Tell the insurance company about it and ask for a discount.
If you have the cash available, you can lower your rate by paying for 6 months or 1 year of coverage at once instead of going with monthly premiums. This will save you the finance charge.
Last but not least, shop around! Call several different insurance companies and get quotes from them, and when you do so, of course ask about any and all discounts they may offer. Sometimes they won’t tell you about every discount that they may have available unless you ask.
Do you own a home? If so, then you will have homeowner’s insurance. Call that company as well, and get a quote from them. Oftentimes you may be able to get a lower auto insurance rate by combining the policies.