Anyone who drives knows that cars can get expensive. Not only do you have to worry about finding the right vehicle, repairs, and paying for gas, but you’re legally required to insure your car in case of accidents. It all results in more money out of your pocket book. This doesn’t mean, however, that you can’t minimize these costs, especially regarding insurance.
Maintain Good Credit
Some don’t realize it, but good credit counts when buying insurance, similar to obtaining a mortgage or buying a car. This score affects how much you’ll pay, even though insurers look at your credit a little bit differently than banks or third-party lenders.
They use your credit namely to predict the odds of you filing a claim after getting into an accident. Even if you’ve never had an accident, a low credit score may mean higher insurance costs because companies see you as a liability.
For these reasons, you need to maintain good credit before, during, and after getting auto insurance. You can do this in several ways. One of the easiest is to just keep up with your monthly payments, including bills, rent, and debt owed on credit cards. Set up payment reminders to ensure you don’t miss a payment. Slowly, but surely, you’ll repay debt and set up a bright financial future in the process.
Keep any balance on your credit cards as low as you can and avoid risky spending. This helps you portray the right image when insurers examine your credit.
Choose the Right Vehicle
From the very start, you can lower your auto insurance policy by selecting the right type of vehicle. It is easy to gravitate to a brand-new sports car. Although they are fun to drive and smack of prestige, their insurance rates are typically higher because of their inherent risks.
You save money by opting to drive a small SUV, for example. According to aggregated data, these vehicles started accruing lower insurance premiums once manufacturers began installing electronic stability control to reduce their vulnerability to turning over.
Insurers reward vehicles incorporating advanced safety devices. So, scan through every vehicle’s safety features. Make sure they are highly rated from passing rigorous crash tests. You will appreciate the difference a wise choice makes when you receive the monthly premium from your insurance company.
Any time you purchase a vehicle, assess how much the insurance will be. Make sure whatever policy you choose is affordable and works in favor of your financial future. A vehicle offers little prestige when you must scrounge around for coin to help pay for insurance.
Top 10 Least Expensive Vehicles to Insure, cars.usnews.com
Top 10 Tips for finding the right car insurance policy, consumerreports.org