Insurance Basics: Everything You Need to Know

2 Options That Can Help Lower Your Auto Insurance Rates

Lowering your auto insurance rates is a great way to save quite a lot of money over time, but it can often be tricky figuring out exactly how to go about getting those lower insurance rates. Listed below are two options that can help you lower your auto insurance rates.

Consider Insurance Costs When Buying A New Vehicle

The easiest way to lower your auto insurance rates is to make sure that you keep insurance costs in mind whenever you are considering getting a new vehicle. The reason for this is that the type and value of the vehicle that you purchase are going to greatly affect how much you pay for auto insurance.

For example, you can lower your insurance rates dramatically by simply choosing to buy even a lightly used vehicle because it is going to be valued substantially lower than a brand-new car. The reason for this is that your insurance company will factor in the value of the vehicle in order to determine just how much they will have to pay if they need to completely replace or repair the vehicle if you file a claim. The lower the value of the vehicle, the less the insurance company will have to pay, which is why they give discounts to individuals that buy used vehicles.

In addition, make sure that you get an insurance quote for any vehicle you were looking at before you actually purchase it. The reason for this is that some makes, models, and styles are more costly to ensure. For example, due to the fact that sports cars are considered more dangerous to drive, they are insured at a higher rate than other vehicles.

Consider Staying With A Single Insurance Company

Another option that can help lower your auto insurance rates is to consider staying with a single insurance company. This means trying to consolidate all of your insurance policies for your home, all of your vehicles, and any recreational vehicles that you may have with a single company because you can then get a bundling discount. In addition, the longer you happen to stay with a single insurance company, the greater the odds are that the insurance company will lower your rates in appreciation of you being a loyal and good customer.

Speak with your auto insurance company or agent as soon as possible in order to discuss what options may be available to you for lowering your auto insurance rates and to determine what discounts you qualify for. You will want to consider insurance costs when buying a new vehicle and staying with a single insurance company for as long as possible in order to lower your auto insurance rates.