Car insurance can be tricky. Almost as tricky and confusing as buying a new car. And when you need to buy both within a budget, there’s no alternative to being smart and planning well in advance. If you’re wondering how to fit your new car and its insurance within your budget, here are a few tips:
Check Your Finances:
It’s always better to start off by making a budget. Include the maintenance and the insurance costs when you’re figuring out how much you can spend on your car. Also, if you can’t afford a new car, it might be wise to consider used car options. New cars cost more to insure than used cars for three reasons:
New cars are more prone to theft as compared to used cars. Also, if the theft rates for your model is high, your insurance company will charge extra dollars to insure your car. Before you buy a new car, search its theft history to understand whether your car is at risk of theft.
2. Repairs & Replacement
Many times, new cars can cost a lot more to repair as their parts can be really expensive. Also, if the car gets totaled, it can be expensive to replace as compared to a used car.
New cars tend to have the latest technologies and thus, they drive at a faster speed compared to their older models. This increases the risk on the road and for your insurance provider, this risk translates into higher premiums.
If you have the money to buy a new car, it’s best to get a few quotes for different models to understand the costs associated with insurance. Also, analyze the kind of coverage you will need so that you can stick to your budgets and still manage to be properly covered in case of an accident.
Make a Long-Term Strategy
Rather than looking for a short-term discount or choosing the lowest rate in the current scenario, focus on getting lower rates in long-term. You can do this by taking a defensive driving course, avoiding traffic violations and trying to stay out of accidents. Also, you can install safety features in your car to get additional discounts. When you look for a car insurance, remember that it’s not just about the present year but about turning into a safer, more responsible and better driver for life.
Don’t Do It Alone
A trusted insurance agent or broker can offer a lot of assistance in helping you fit your insurance within your budgets. They will tell you about the latest discounts, go over your coverage step by step and also suggest ways to optimize your coverage.
When you’re in the market for a new car or car insurance, don’t be impulsive. Take your time, go over all your options and only make a commitment that you can afford. Also, remember to review your insurance every few years and make necessary changes to get the best rates in the market.