Buying a New (or Previously Owned) Used Car?
5 Ways to Save on Insurance Rates

Each year, millions of new and previously owned cars are sold in this country. With each of these comes the responsibility of finding car insurance. Because that insurance is something you will be paying during the entire time you have the vehicle in use, it is important to make sure your car’s insurance needs are something you can meet. Therefore, it’s important to know that there are many ways to save on your car insurance rates.

Keep these five tips in mind when shopping around for your next new, or new-to-you, vehicle:

1. Consider an older model car. While everyone likes the new-car smell, purchasing a used vehicle is much easier on the pocketbook. That is true both when paying for the vehicle and when paying the insurance premiums. Even purchasing a car that is one or two years old can add up to big savings.
2. Shop around. Comparison shopping may seem automatic to you, but it is surprising how many people simply go with what they know. Gather the makes and models of several cars you are considering, then shop around for insurance. The quotes you receive may well be a factor in determining which vehicle you buy, because car insurance rates vary significantly by make and model.
3. Remove options. Ask the insurance company which options you could remove in order to save on premiums. For example, depending on the company, you may be able to do away with coverage for rental cars and towing.
4. Ask for discounts. People qualify for many discounts, but they don’t receive them because they fail to ask about them. Be proactive in asking insurance companies what type of discounts they offer, and what you would need to do to qualify. Discounts cover a wide range, including everything from combined coverage to good driving records, safety issues, and teens getting good grades.
5. Deduct higher. Opting for a higher deductible can make a sizeable difference in the rates you pay for insurance. If you choose a higher deductible, you can usually save a lot on the premiums.

Even though there are potentially many ways to save on auto insurance, you will need to take matters into your own hands in order to make that happen. With every car payment you consider, remember that it also comes with additional expenses, such as insurance, gas, repairs, etc. Get the insurance worked out before making your car purchase decision, so that you are not bogged down with more than you can afford, later on.