Auto Loans 101
Step 4, Part 1: The 411 on Insurance
Page 11 of 17
Insurance Costs
Insurance is pricey, but it’s the law and it should be a factor in the car buying process. Compare estimated insurance costs for the type of car you’re considering. Sure, that V8 engine sounds sweet, but can you afford the insurance hike it might cost you? Be sure to do your research and know what to expect when you’re ready to sign up for insurance. Check out these tips for saving money on your insurance:
Watch your credit score.
Insurance companies base interest rates on your credit score so keep it clean and tidy.
Shop around.
Call around for quotes from several different companies. You can pay double the price for the same coverage at different insurance companies. Also, contact your state insurance department and ask if they have pricing information available.
Look both ways.
Accidents will cost you. Stay safe on the road, keep your record clean and shop for cars with alarms and safety features to keep your premiums low.
Discuss discounts.
Good student? Have a home insurance policy with the same company? Gone three to five years without an accident? Ask the insurance company what discounts are available and take advantage of them. Every little bit helps.
