Once you purchase a car or any other motor vehicle, the immediate action is to buy insurance. Most of them just end up buying the insurance without thinking about the premium, hidden cost etc. It is a good idea to read the terms of insurance, premium amount and other minor details. It is also wise to consider at least three to four quotes from different insurance companies before buying.
Purchasing the Insurance with Right Objectives
It takes your time and effort in reviewing and assessing, which insurance is economically viable for you. However, it definitely saves some money for you. You can take the help of online portals, which provide comparative auto insurance quote, if you provide the details of your vehicle. You can get to see four to five quotes and choose the best.
Consider the following details before you decide –
- Premium is reduced when there is no accident in the last three years or in some cases five years.
- No traffic violations in the last one-year or three years will also reduce your premium. The number of years varies from one insurance company to another.
- Earning credit points like paying bills on time. You can get your credit report at annualcreditreport.com for free. Check your points or score and demand a lower premium for a good score.
- The premium is also based on the car you have. The premium is high for SUVs and less for middle sized sedans.
- Premium is reduced in cases where anti lock braking system, anti theft and air bags. So, get a discount on these items from your car dealer.
- You can reduce your premium, if you increase your deductibles. Ensure that you would get that increased amount of deductible. Only then, increase the deductible, so that your premium is less.
- You can consider which insurance to choose based on the model of your car. If you are planning to change your car in short time, then go for liability insurance and uninsured protection plan. In this case, taking comprehensive insurance or collision insurance becomes expensive. It is also unnecessary to pay up a high premium for this type of car by buying comprehensive insurance.
- Experience of the driver aids in lesser premium, so show your experience in driving
- You can get a discount on your premium based on the miles you drive. The lesser the miles, the lower is the premium. So, enter the miles covered keeping this in mind.
- Take up different insurances from the same company. If you like to take up health insurance, house insurance etc then it would be wise to take all of them from the same company. This would pave way for asking for a group discount.
- Insurance companies would be tied up with a few professional companies. If you are a professional, then you could check if you can have the benefit from it. You would get a discount, if you were one amongst the associated professional companies.
- Good grades in school will come to use here too. You can show your good credits at school and avail lesser premium.
- When you renew the insurance, consider various options and review them.
Read through and take time in making the right decision for buying your insurance.