It’s no secret that car insurance can be expensive. If you’re wondering how much is car insurance these days, the average cost is over $1,500 per year. That’s a lot of money. And so, if you’re in the market for a new car, it’s important to estimate how much your car insurance will cost before you buy.
You can budget accordingly and ensure that you won’t be surprised by high premiums after purchasing your vehicle. Here are several steps to estimate your car insurance costs and find the best rates possible.
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Hone In on a Particular Make and Model
When it comes to choosing a new car, there are a lot of factors to consider. In addition to finding the right make and model to suit your needs, you also need to consider insurance costs. While it’s essential to get an accurate estimate of your insurance premiums, it’s not practical to get a quote for every single vehicle.
However, you can take a few simple steps to narrow down your choices. First, consider the type of car you want. For example, sedans tend to be less expensive to insure than sports cars. Second, think about the size of the vehicle. Larger cars usually cost more to insure than smaller ones.
Finally, research the safety record of the different makes and models you’re considering. Cars with a good safety rating will typically have lower insurance rates than those with a poor safety record. By taking these factors into account, you can narrow down your options and find an affordable and practical car to insure.
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Get the Coverage You Need
When it comes to car insurance, it is tempting to save money by only purchasing the minimum coverage required by your state. However, this could cost you more in the long run if you are involved in an accident. If your car is totaled or stolen, or if you cause damage that exceeds your coverage limit, you will be responsible for paying the difference out-of-pocket. This could mean thousands of dollars.
By purchasing coverage that is at least equal to the value of your car, you ensure that you are fully protected in the event of an accident. While it may cost a little more upfront, it could save you a lot of money.
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Shop Around and Get Multiple Quotes
When it comes to car insurance, it’s essential to shop around and compare rates before purchasing coverage. Several factors can impact your premium, including your driving record, the type of car you drive, and the level of coverage you need.
By taking the time to compare rates from different insurers, you’ll be sure to get the best possible rate. In addition, ask about available discounts. Many insurers offer discounts for good driving habits, having multiple cars on one policy, and more. You can save even more money on your premium by knowing and taking advantage of these discounts.
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Pick a Deductible That You Can Afford
Your deductible is the amount of money you have to pay before your insurance company starts to pay for a covered claim. For example, if you have a $500 deductible and file a $5,000 claim, your insurance company will pay $4,500. You’ll be responsible for paying the first $500. Most people choose a deductible that they can afford to pay out-of-pocket if they need to file a claim. This helps ensure you won’t be financially strained if you have to pay your deductible.
It’s important to remember that your deductible is only due if you file a claim. If you don’t file a claim, you won’t have to pay your deductible. So, if you can avoid filing small claims, it may be to your benefit to choose a higher deductible to get lower premiums.
Ways You Can Save on Car Insurance
You can do many things to help lower your car insurance rates. First, you should ask about discounts. As mentioned, many insurers offer discounts for things like good driving habits and multi-car policies, to name a few. Not everyone is aware of these discounts, so do your research and save money on your premium.
Second, consider increasing your deductible. By choosing a higher deductible, you can lower your premiums. However, it’s crucial to ensure that you can afford to pay your deductible if you have to file a claim.
Finally, be sure to shop around and compare rates from different insurers. By taking the time to do your research, you can get the best possible rate on your car insurance.
The Bottom Line
Car insurance is an integral part of owning a car. By estimating your costs and shopping around for the best rate, you can get the coverage you need at a price you can afford. With a bit of planning and effort, you can find the perfect car insurance policy for your needs.