When you're buying a car, you probably are not thinking about the little details like insurance coverage. Whether you're purchasing new or used, it's more exciting to drive your vehicle home than to handle insurance policies and premiums. Of course, getting proper coverage on any car is not only essential to protect your investment, but it's also the law in most states.
Fortunately, buying insurance for your car doesn't need to be a hassle. These three tips will help you to get an excellent policy at an affordable price, so you can enjoy your new purchase on the open road instead of focusing on your car insurance coverage.
1. Factor Coverage Into Your Costs
When you're considering whether you can afford a car, you're probably looking at your monthly payments, maintenance, and gas costs. However, insurance costs can vary significantly between vehicles. For example, it's usually much cheaper to insure a small economy car than a large SUV or a sports car.
If you're trying to budget for a new vehicle, you should always get a few quotes before making any final decisions. You may discover that a model you're considering will push you beyond your budget. On the other hand, you may be able to save a significant amount of money by choosing a more economical vehicle with lower insurance premiums.
2. Call Your Current Insurer And Then Shop Around
Before you purchase your new car, call your current insurer to discuss your rates and coverage. Your provider should be able to provide you with a quote for your new vehicle, even if you haven't finalized the purchase yet. You can use this information to determine if you should switch providers with your new car or stick with your current insurer.
Even if you receive a reasonable rate, it's still worthwhile to get quotes from a few other companies. You may be able to get similar coverage with lower premiums by shopping around with other providers. You're under no obligation to start a policy just because you receive a quote, so you shouldn't hesitate to get as many quotes as you can.
3. Speak With Your Lender
If you're financing your car, your lender will typically have special insurance requirements that you'll need to follow. In many cases, you'll need to take out a collision and comprehensive policy. Check with your lender to determine the coverage amounts they expect. Failing to meet these coverage minimums can lead to harsh penalties, so it's a good idea to get as much information as you can.
Ultimately, taking out coverage on your new car shouldn't require more than a few hours of effort. By taking the time to do a little research and shop around, you'll be able to select a policy that fits within your budget while keeping your new ride protected.