Ten Tips to Save on Vehicle Insurance for New Cars

A car insurance policy is a safety net that need not necessarily put a dent in your budget. A few intelligent steps can ensure that. A few tips are given below on how you can save on your premium for your new car.

1. Decide on the insurance before deciding on the car.

Insurance companies are very much aware of the kind of car that can lead to a claim. Cars that are more vulnerable to thefts, accidents etc. will attract higher premium. A car that has safety features, daytime running lights, anti theft devices, airbags and automatic seatbelts will qualify for greater discounts. A low profile car as opposed to a flashy or sporty car will result in higher savings on insurance.

2. Compare prices.

You normally do not buy things without comparing prices. This holds true even for insurance. Compare premiums. You may get the same coverage at different prices from different providers. Take time to check it out on the internet or ask your insurance agent.

3. Combined coverage.

Get your car insured from the same company that you get your house insured from. You may be eligible for a discount. You may also get all your cars insured from the same company. They may give you a discount as an incentive to return to them.

4. Higher deductibles.

The insured person pays a definite amount for repairs to the car before the insurance company pays. This amount is called a deductible. The higher the deductible the lower will be the premium for a collision and comprehensive coverage. You may be able to save as much as 40% on your premium.

5. Clean credit record.

Everyone is wary of defaulters. Keeping a clean credit record may lower the premium for you.

6. Clean driving record.

A person who obeys traffic rules and has a good track record may qualify for lower premiums. Company may not give discounts to a driver with a history of traffic violations and accidents. They may also give a safe driver’s discount to a driver who has undergone defensive driving classes.

7. Group insurance.

If you are a member of a group, association or alumni group, you may qualify for a discount. Your employer may have taken a group insurance plan. A reduction may be given to you if you go through your employer’s plan.

8. Lower mileage.

The more you are on the road, the greater the risk. If you travel a lot, you are a claim risk for your provider. If you car pool or travel less, your car has lesser mileage for the year and you may be able to get a discount.

9. Say no to towing coverage.

Towing almost always gets covered under comprehensive collision coverage. Moreover, if you keep you vehicle well maintained, the need to be towed can be minimized.

10. Custom equipment.

The insurance company determines the actual cash value of the car as a whole. If your car is stolen or damaged, expensive gizmos and equipment may not be compensated for in totality.

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