Four Steps to Comparing Insurance Rates Before Buying a New Car






If you are looking to buy a new car insurance plan, you want to make sure that you do not pay too much money for it. Every year, people pay far more than they should for the coverage that they need. They will pay hundreds of dollars more to one company to get the exact same coverage that they could get from another company while saving their money. This happens simply because people will buy the first type of coverage that they see, not taking the time to do the necessary research. If you consider the following things before you buy, you can compare the rates and get a good deal.

1. Shop Around

The most important thing that you can do is to avoid that trap of buying a policy from the first company that you find. This sounds obvious, but people do it all of the time. They let their feelings of urgency win out over their feelings of common sense. You want to look into at least three different policies with three different rates. If you have the time, you should look into around ten. Shopping around will give you a feel for the market so that you can know what is a good price and what is not.

2. Look at the Discounts

Some companies may have a high base rate and then give you many discounts. Others might give you a low base rate but then refuse to take anything off it for those who deserve it. If you are a good driver, you should look into these companies that offer discounts. You can probably qualify for a few of them. There might be a discount for having multiple cars or there might be one for having good grades in school. There could be others for driving a low amount of miles every year or staying out of accidents.

3. Look at the Types of Coverage

Another thing to keep in mind is that different types of coverage are more appropriate for different cars. When you are comparing rates, you need to compare all of the different types. If you have a brand new car, you might need comprehensive collision insurance. If you have an older car, you might be able to get by with the base level of coverage. Make sure that you compare all of these to see which plans give you the most coverage for the least money.

4. Keep Your Rates From Rising
When you are comparing, you also want to see how much the rates will go up in certain situations. If you are involved in an accident, your previously cheap rates might jump through the roof. The same could be true if you get a ticket. You want to avoid these situations to keep your rates from rising. To be safe, however, you should see which companies would increase your rates the least. These could prove to be a better deal in the end.


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