When you are ready to buy a new car you go to the dealer shop and search for the one you had in mind, sometimes you have many ideas of what you would love or can buy, you may have already researched the pricing, the models, options… But one common thing we all do is forget about the insurance amount we will pay for a new car. We usually don't have that amount added in our mind to our monthly payments that we should have thought about when we were planning to buy a new car. What we do know for sure is that we need insurance to get that car out of the dealer.
We also need to know some factors that may affect your auto insurance premiums, some of which are; your car, your driving habits, demographic factors, and the deductibles you choose. But don’t forget that these factors may include things such as your age, anti-theft features in your car, and your driving record.
So we at COVU highly recommend that you check with us while you may attempt to reduce or eliminate coverages to help lower your car insurance premium, it’s important to know that there are other factors that you may change to get the best auto insurance coverage.
Here are 5 tips that will affect your auto insurance
- The vehicle
Yeah, this is really obvious, the more expensive the car the higher the premium, but you also should know that having an inexpensive car does not necessarily mean you will pay less in auto insurance. Yes, a cheaper car will require you to pay less for comprehensive coverage, which covers damage caused by weather, fire, vandalism, or accidents involving accidents. But if your old car has a big engine, is a rare model, it may be even more costly to insure than a pricier car.
2. Your Age
Your age will impact your premium in different ways, in general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. Insurers generally charge more if teenagers or young people below the age of 25 drive your car. Also, they may charge more if you are older than 70. It all varies depending on the age.
3. Driving habits
Knowing how much you drive will come very in handy when you get your policy, Insurers typically look at how much you use your car. Something that home office has helped a lot is not using your car for a long commute to work. So this is different from saying someone who only uses their vehicle on weekends, the logic on this is since more miles behind the wheel mean more exposure to risk. Your driving record also takes a toll on your driving habits, If you've been in multiple accidents, your cost for car insurance is likely to be higher than someone with a clean driving record.
4. Your demographics
Location, where you live has a large impact, due to higher rates of vandalism, theft, and accidents, urban drivers pay a higher auto insurance price than those in small towns or rural areas. The weather is also a factor that can affect premium prices. Even where you park your car at night can have a say on your policy. So keep this in mind when you are shopping for auto insurance.
5. The coverage
This tip is too wide to explain in a few sentences, and actually this is where most people get confused, so we save this for last since it's where COVU comes extra handy. The coverages you choose may affect the cost of your car insurance premium. Depending on the state you live you would have to check the state auto insurance requirements, typically involving liability coverage. Coverages that are also typically included in a car insurance policy are comprehensive coverage, uninsured/underinsured motorist coverage, collision coverage, depending on the state. There are so many add ons you can get for auto insurance, it all depends on your needs.
