When you buy a new or used car, one thing you need to factor into the cost is how much you'll need to spend on insurance. You see, how much you pay in car insurance is essentially like adding on an additional fee to your car payments. Several factors go into determining the cost of your insurance plan.
First of all, you need to think about the kind of car you're getting, as it directly affects the insurance cost. A brand new, expensive car is going to have a higher insurance premium than an older vehicle. It's better to get an older car with comprehensive coverage than a new one and skimp on your plan.
To lower your monthly premium, opt for a higher deductible. It won't cover as much if you get into an accident, but the lower month payments may be worth that sacrifice, especially if you're on a budget.
Another way to improve your insurance rates is to make sure you're up to date on all of your other bills. Having a bad credit score or poor marks on your credit report can leave you struggling to get a good deal. Be responsible with your debt and you could reap the rewards.
Another thing to consider when trying to get a good deal car insurance is how the insurance company operates. Do they offer online access to your account? Do they have a good reputation for customer service? Are they notorious for spontaneously raising rates? Do your research to find out what each potential insurance company does. It could make the different between a positive experience and a negative one.
Sometimes, discounts are available on car insurance. For instance, having a stellar driving record can qualify you for a discount. Students maintaining a 3.0 grade point average can get discounts. Senior citizens, people with short commutes, and those with added safety devices installed in their cars can get money off their premiums. Remember to ask about discounts, however. While some companies may bring it up to help you lower your rate, not all will. Be proactive and seek out ways to save money.
Finally, you may wish to consider skipping collision coverage if you have an older car. Really, you're likely to pay more in insurance than what the car is worth. If you get into an accident, it'd probably be cheaper just to replace the car. Still, you need the liability insurance portion of the plan to safely drive in most states.