A new car is an exciting purchase. After all, newer cars tend to have all the bells and whistles, like heated seats and nice touch-screen stereos, that your older model may have been lacking. Unfortunately, new cars also tend to cost more to insure since the value of your car is one factor insurance companies take into consideration when setting rates. Here are a few things you can do to save money on your new car's insurance:
Look Into Telemetric- Based Car Insurance
More and more auto insurance companies are offering telemetric-based car insurance plans. These plans use an app or a device installed in your vehicle to track your driving behavior and reward good driving with lower rates. Just be sure to only sign up for one of these plans if you know you are a safe and defensive driver. Your driving will be tracked based on driving below the speed limit, avoiding sharp braking, and driving during less busy times.
Consider Raising Your Deductible
One simple way to lower your car insurance premium right away is to increase your deductible. Your deductible is the amount you have to pay out of pocket if you are in an accident or your car is otherwise damaged before your insurance policy kicks in and begins to cover the bills.
A higher deductible usually means cheaper insurance. If you have a great driving record and know the chances of being in an accident are slim, a higher deductible may be worthwhile. Just keep in mind that you should always have the amount of your deductible set aside in a savings account, just in case.
Ask Your Agent About Discounts
Sometimes, it takes a car insurance agent personally going over your driving record, situation, and history as a customer to unlock maximum savings. Talking with a car insurance agent on a phone allows them to ask a variety of questions to discover if there are any discounts available that you aren't taking advantage of.
For example, your car insurance company may offer discounts for your employer, or because you took a defensive driver class, or because you installed an anti-theft device in your car. It's always worth a try to see if a personalized audit of your account can lead to a better rate.
While buying a new car may lead to an increase in your car insurance premium, being proactive, and following these tips will help mitigate the extra cost. For more information about car insurance, reach out to a local insurance agent.