Tips on Finding the Right Car Insurance for Your Needs
For as long as you can remember, you have been a car buff. You are especially fond of luxury and performance cars, and you recently treated yourself to a snazzy new vehicle as a holiday gift.
Now that you have your lovely new vehicle parked safely in your garage, you want to be sure you have the proper insurance for her, without completing breaking the bank. As it turns out, getting the right car insurance is like many things in life — you have got to strike the perfect balance, in this case between saving money and making sure that you have a solid car insurance policy in place.
While this may seem like a daunting goal, it doesn’t have to be. This step-by-step guide should make getting the right car insurance for your needs, and your car’s needs as easy and stress-free as possible.
1) Get Multiple Quotes
You might think that your current insurance company is offering you the best possible deal. Granted, this may be the case — or it may not be. As Forbes notes, premiums can vary greatly from company to company so it’s worth taking the time to call around and ask what your make and model vehicle will cost to insure. You may be pleasantly surprised to learn that another reputable company could charge you hundreds of dollars a year less for the same coverage, which means more gas money for taking your new car out on road trips.
2) Be On the Lookout for Multi-policy Discounts
When shopping around for auto insurance for your speedy new ride, remember that many companies love it when you have more than one policy with them. Keep your eyes peeled for any multi-policy discounts that you might qualify for — for instance, a bundling plan that rewards you for buying your homeowners, life and/or auto insurance through the same firm. A great way to check for this type of discount is with Protect My Car; in addition to offering extended warranties and service plans, they also feature new and used car insurance plans along with homeowners insurance. You can use Protect My Car’s handy tool right on the site to enter in some basic info and get a free quote within a short amount of time.
3) Know that Your Minimum Coverage May Be Different than the Average Vehicle’s
Minimum car insurance requirements vary from state to state. As you research your car insurance needs, check out NerdWallet.com and their handy list of each state’s requirements. For instance, California residents are required to have $15,000 bodily injury liability per person, $30,000 bodily injury liability per accident and $5,000 property damage liability per accident. If you live in Colorado, these same required amounts are $25,000, $50,000 and $15,000, respectively. By knowing what you are required to have, it will help you have an educated conversation when calling various companies to see what their premiums will run for your new car. Interestingly, as The Balance notes, if you plan on keeping your beautiful new luxury car as a showpiece, taking her to shows and never driving the vehicle to work or on errands, your insurance coverage may be tailored more to your specific needs rather than by these minimums. Have an honest talk with yourself about what you intend to do with your performance car and then share this with the insurance agents; this will accurately help determine the best insurance for you.
4) Adjust Your Deductible
You may have had the same deductible on your cars for years. If this is the case, it is definitely time to rethink what you are paying for this part of your policy. Generally speaking, the lower your deductible, the higher your rates will be. When you first purchased car insurance many moons ago, your agent might have set your deductible at a lower amount like $250. But now that you are more established financially, you could probably cover a higher deductible amount like $1,000 without a lot of hardship. If this is the case, adjust the deductible to a higher amount, which should result in significant savings.
5) Ask for Discounts
This tip is a classic example of how it never hurts to ask. Car insurance companies offer a variety of discounts, including being accident free, being a good student (which is great for when your teens are ready to drive), paying your premiums for months at a time online instead of through paper bills and having more than one car on your policy. Google your current insurance company and “available discounts” to see what you might qualify for, and then ask your agent if she can apply these savings to your policy.
6) Enjoy Your New Car — You Deserve It!
It is good to know that an expensive car does not necessarily mean shelling out the big bucks for insurance. By following the steps in this guide, you should be able to obtain a great auto insurance policy that will cover your new performance vehicle while not breaking the bank.