Did you know that the cost of car insurance can be a deterrent for a lot of people when they are looking to purchase a new car? In most states, it is mandatory to have car insurance before you can drive your car on the road. However, that doesn’t make it any less expensive. The average cost of car insurance has been steadily increasing over the last few years and it continues to do so. According to various research reports, the average annual premium for car insurance has risen by around 20 percent in recent years. This means that if you buy a new car today, expect to spend about $1,000 every year just on insuring it (if you don’t make any other changes). However, there are several ways in which you can reduce that cost and get affordable auto insurance quotes.
Know The Different Types of Car Insurance
The two main types of car insurance are liability insurance and comprehensive insurance. Liability insurance is required by law in every state in the U.S. and it covers the cost of any damage or injuries that you or your car might cause. Comprehensive insurance covers the cost of repairs in the event of damage caused by factors such as hail storms, floods, or falling objects. If you own a certain type of car, such as a sports car, vintage car, or a collector car, you might need to get a specialized type of car insurance. There are also various add-ons and extensions that you can get along with your basic car insurance policy. These include things like roadside assistance, car rental, and towing services in the event of a breakdown. These can significantly increase the cost of your car insurance policy.
Research the Market
Before you buy a new car and start looking for the best auto insurance quotes, you need to research the current car insurance market and find out how much different policies cost in your area. There are a number of car insurance websites that you can use to get quotes from various different insurance providers. You can also get auto insurance quotes from your current provider and see if they have any special discounts or offers available. You should keep shopping around until you find the right policy at the right price. One advantage of purchasing car insurance policies online is that you can compare quotes from several providers at the same time. You can also take note of the different types of coverage included in each policy and make an informed decision.
Get a Good Road Safety Rating
If you are a young driver, you might find that the cost of your car insurance is significantly higher than that of other drivers. Getting a good road safety rating will help you keep your car insurance costs down. Some of the factors that insurance companies take into account when calculating your road safety rating include the number of years you have been driving, your driving record, and the type of car you drive. Getting a good road safety rating will significantly reduce the cost of your car insurance as well as give you a discount on your car insurance. Some insurance providers will even take into account the number of years you have been driving without a claim on your record. If you’ve been driving for over 10 years without a claim, you might be able to get a discount on your car insurance policy.
Combine Different Policies
If you have a homeowners or renter’s insurance policy, you might be able to get a discount on your car insurance if you combine both policies with the same provider. Most insurance providers will offer a discount of around 10 percent if you combine your car insurance policy with another policy from their company. For example, if you have homeowner’s insurance with State Farm, you might be able to get a discount on your car insurance if you combine both policies. You can also combine your car insurance policy with a life insurance policy. This is often called a “wrapped” policy and is usually more expensive than a standard car insurance policy. The good news is that you can easily cancel a wrapped policy once you are finished paying off your car loan.
Choose an Affordable Package
If you have been with the same insurance provider for a while, you might be able to get a discount if you switch to an “existing customer” package. Insurance providers will often offer existing customers a special deal. You can also try bundling your car insurance policy with other policies such as your home or life insurance policy. If you have several policies with the same insurance provider, you might be able to get a discount on all of them. You can also try calling your insurance provider and asking if they have any special offers or discounts available.
Buying a new car can be a really exciting experience. However, it can also be costly. The average cost of insuring a new car is around $1000 every year. However, there are several ways in which you can reduce this cost and get affordable auto insurance quotes. The first thing you need to do is research the current car insurance market and find out what policies cost in your area. You can also compare quotes from various different insurance providers and find the right policy at the right price. You can also get a good road safety rating, combine different policies, and choose an affordable package to reduce the cost of insuring your new car.