Posted On:08 Sep 2023

10 Wallet-Friendly Tips to Secure Your Car Insurance

10 ways to save big on new car insurance

Hearty congratulations on your new car! We know that you are feeling all pumped up with your new car and ready to ride to your favorite places. As you begin your new journey with a brand-new car, don’t forget to secure the right car insurance. Protect your precious car with perfect insurance coverage.

With the rise in the cost of insurance, it is challenging to find wallet-friendly options for new car owners. Whether you’re driving on scenic highways or conquering daily commutes, it is essential to get car insurance based on your needs.

“The cars we drive say a lot about us.”

- Alexandra Paul

In this blog, we will help you by providing 10 wallet-friendly tips to secure your car insurance and ensure you get the best coverage for your new vehicle without straining your finances. So, buckle up as we explore how you can save big while staying completely protected on the road.

What is a new car insurance?

As the name suggests, it is a specifically designed insurance policy for brand new cars and it completely differs from standard car insurance. You might have a question as to why is there a difference between regular car insurance and new car insurance. Well, the difference lies in the value that a new car holds.

Generally, brand-new cars come in with higher values and top-notch quality as it’s yet to be driven on roads. Hence special coverage is required for new cars. This insurance is specially tailored to meet the fresh needs of your new car!

There are several factors involved that directly affect the cost of your car insurance premiums. These factors include the make and model of your car, safety features, and your location can influence your premiums. Now that we have our foundations established, let’s get to exploring the 10 wallet-friendly tips in the next section.

Tip 1 - Shop around for quotes

One of the proven effective ways to get wallet-friendly new car insurance is by shopping around for quotes. Insurance premiums differ from one provider to another, hence doing your homework proves to be an advantage for you and your car. You can primarily start by getting quotes from different insurance companies.

You can directly reach out to insurers, work with insurance brokers, consult with friends and family who have already taken car insurance, or use quote comparison tools online.
These tools help you compare quotes from various insurers in a matter of minutes. While you’re requesting quotes, it is essential that you provide correct information about your new car, including its make and model, year, and additional safety features. These tiny details make a big difference in the rates you receive.

4 major benefits of comparing quotes

Here is why comparing quotes is important!

Save costs

By researching multiple quotes from different insurers, you get to find a policy that offers the right coverage you need at a lower cost.
Customization

Different insurers offer different coverage options and discounts based on the type of car you purchase. Comparison of quotes helps you customize your car insurance as per your requirements.
Knowledge is power

Comparing quotes lets you stay updated and gain a better understanding of the insurance market and trends. This fundamental knowledge helps you make an informed decision.
Escape from overpaying

Without comparing quotes and different coverage options, there are high chances that you might end up paying more than what is necessary and it doesn’t align with your needs.

Tip 2 - Choose the right coverage

Now that you have all the information after the quote comparison step, you need to choose the right coverage options available and select the best one that suits your needs. Choosing the right coverage option can highly impact the insurance premium that you will be paying on a monthly basis. Let’s make the process easy for you by understanding the coverage options available.

Understanding the 6 types of coverage

The car insurance taken by person A differs from that of person B as they might have chosen two different coverage options. These are different types of coverage offered in car insurance.

Liability coverage - This covers damage that is caused by you to others during an accident. It’s often required by law.
Collision coverage - This helps pay for damages caused to your car when it collides with another vehicle or object.
Comprehensive coverage - This covers damages caused to your car due to non-collision events such as vandalism, theft of parts, or natural disasters.
Personal Injury Protection (PIP) or Medical Payments Coverage - In the event of an accident, this type of coverage covers medical expenses for you and your passengers.
Uninsured/Underinsured Motorist Coverage - If you’re in an accident with another driver/motorist who has little or no insurance, this coverage can protect you.
Gap insurance - This is most suitable and essential to new car owners, where it pays the difference between what you owe on your car loan and its current value if it's declared a total loss.

2 ways to customize your coverage?

If you want to choose the right coverage for your new car, consider factors such as your car’s value, your budget, and your personal circumstances.
Comprehensive coverage might be essential for a brand-new car but doesn’t make any sense for an older car or one that has a lesser value.

How to balance your coverage and premiums?

It is essential to maintain a balance between the coverage you choose and the premiums you pay. Comprehensive coverage offers extensive protection but on the flip side, it can also be costly and challenging to afford.

If you happen to purchase a new car but are on a tight budget, you can consider opting for coverage that helps meet your needs and is something that can be affordable in the long run.

For example - If you own a new economy car, it is advisable to prioritize your liability coverage to protect against potential lawsuits. Balancing your coverage helps keep your premiums in check.

Reviewing and adjusting your coverage

As the economy and your lifestyle change, it is essential that you continuously review and adjust your coverage accordingly.

For instance, if you have paid off your new car loan or if you find out that your car’s value has been depreciated, you can consider switching your coverage and reducing your premiums.

However, it is important to know what type of coverage aligns with your financial circumstances, and your risk tolerance level. Remember that you need to be careful in selecting the right coverage to ensure that you’re not overpaying for unnecessary protection.

Tip 3 - Bundle your policies

Bundling your insurance policies with others is a smart way to secure wallet-friendly car insurance. Under this approach, you purchase multiple insurance policies from the same insurer. It might sound complex, but bundling proves to be one of the best ways to cut costs.

When you bundle your insurance policy, it means that you are purchasing car insurance along with another policy such as homeowner’s insurance. This consolidated approach helps manage all your policies under one insurer.

Top 3 Benefits - Why should you consider bundling your policies?

Discounts

Policyholders who consider bundling their insurance policies receive discount rewards from insurers. These discounts can save you some dollars during premium payments.
Convenience

Managing all your policies with a single insurer helps maintain a single point of contact for all your insurance needs. This makes room for more convenience.
Streamlined coverage

Bundling all your policies can make sure that you have comprehensive coverage for various aspects of your life, from your car, and home to rental property.

Common options to bundle your coverage

Bundling your car insurance coverage with a home or renter’s insurance is the usual option chosen by many people. Some insurers usually offer packages that include auto insurance, home insurance, or even life insurance, providing comprehensive coverage.

Tip 4 - Increase your deductible

To secure pocket-friendly insurance, adjusting deductibles can have a major effect on your premiums. Let us now get to the details on why adjusting your deductibles matters for budget-conscious car owners.

What is a deductible?

In the subject of car insurance, a deductible is the amount that is agreed by the policyholder to pay out of their pocket before their insurance coverage is claimed.

For example, if you have an insurance claim of $1,000 in damages, your insurer will only pay $900 and you are expected to pay the rest $100 out of your pocket.

Increasing your deductible can lead to lower insurance premiums, here’s why:

Risk sharing

By choosing to pay a higher deductible, you are sharing more financial risk with the insurance company than those individuals who pay a lower deductible. Since you’re willing to cover your risk of potentially large sums of claim, your insurer will be willing to reward you with lower premiums.
Cost savings

As a trade-off for accepting a higher deductible your insurer might charge a lesser policy amount to you, enabling you to save money over time.

Tip 5 - Maintain a clean driving record

Apart from comparing the quotes, you must simultaneously focus on maintaining a clean driving record as insurance companies look for a clean and safe driving record. Maintaining safe driving not only helps you from unexpected accidents but also helps in keeping your insurance costs in check.

3 advantages to maintaining a clean record

Lowers your premium as clean drivers maintain safety on roads. This can help you gain discounts and save on your premiums.
With a clean driving record, you’re less likely to face coverage limitations and restrictions, ensuring utmost protection for your new car.
Safe driving practices not only help you qualify for a comprehensive policy easily but also contribute to your overall safety and the safety of the public on the road.

Tip 6 - Consider usage-based insurance

This insurance program is a modern approach that takes into account your driving habits and behavior. This not only relies on traditional factors like age, location, and type of car but uses telematics technology to monitor how you drive. They assess the behavior of the vehicle using GPS technology and onboard diagnostics to plot the movement of the car on a computerized map.

Tip 7 - Ask for Discounts

We encourage you to feel free and ask for discounts as insurers may not automatically apply discounts, so if you think you maintain a safe driving practice or are a student, ask for discounts. Some common discounts include safe driver discounts, accident-free discounts, and student discounts for young drivers with good grades.

Here are some other common discounts:

Defensive driving requires you to complete a course on defensive driving.
Low mileage discounts if you don’t drive that often.
Safety feature discounts for vehicles with features like anti-theft systems and airbags.

Tip 8 - Pay annually or semi-annually

Paying your car insurance premiums on an annual or semi-annual basis can help you lower premiums as the policyholder decides to pay in lump sums. You can manage your monthly budgets as you will complete your premium payment in one go, avoiding fluctuations.

Tip 9 - Go for a no down payment car insurance

No down payment car insurance aids policyholders to start their coverage without paying upfront costs which is mostly a down payment. There is no delay in receiving the coverage due to upfront payment restrictions. If you’re someone with limited financial resources, this is one of the best ways to get car insurance.

Tip 10 - Update your policy

Focus on reviewing and updating your policy as there could be certain changes in the economy and the insurance rates might go down. With the help of a continuous review, you can grab the best policy deal that fits right and avoid unnecessary overpayment.

You can do this by observing changes in the value of your vehicle. If your vehicle’s value depreciates over time, you can secure the best deal by paying lower premiums while receiving the best benefits.

Did you know?

Car insurance costs are on the rise. The cost of auto insurance increased by 45.4% between 2013 and 2022.

To conclude,

As a new car owner, you are required to be proactive and start comparing quotes from different insurance companies even before beginning the purchase of your car to make sure you have ample time to decide which insurance provider and coverage options to choose.

With these 10 tips, we hope you can secure an affordable yet comprehensive new car insurance coverage. Wait no more, take action now and start implementing these wallet-friendly strategies to save big on your car insurance premiums.

Secure your best auto insurance coverage!

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