August 26, 2010

How To Lower Auto Insurance Coverage Rates For New Cars

Many drivers often don't consider the cost of insurance when shopping for a new vehicle. The fact is that auto insurance coverage is an important factor to consider in your budget. New cars require full coverage, which can be quite expensive. If you are in the market for a brand new vehicle, you may want to consider these money-saving tips for insuring your vehicle.

Today, most households have more than one vehicle. An effective way to bring down the cost of auto insurance coverage is by adding the new car to an existing policy, such as your spouse's. Insuring two vehicles together can reduce the rates on both vehicles through a multi-car discount.

Having a clean driving record and maintaining a good credit score additionally help with insuring new cars. These two factors go hand in hand to determine rates. You can have an excellent driving record, but still pay high premiums if you have a low credit score, and vice versa. Steer clear of traffic violations and always make your payments on time to obtain affordable auto insurance coverage.

Did you know that by paying more up front, you could be saving literally hundreds of dollars in the long run? It's true. Paying your car insurance in full will save you more than paying monthly. If you multiply the monthly premium by how long you will carry the auto insurance coverage and compare it to what you would pay in full, you will see a significant difference. This is typically not an option, however, as many people can't afford it all at once.

Drivers looking at new cars should consider one that has great safety ratings. Safer vehicles are known to have lower premiums. If you do choose a car that does not have excellent safety ratings, you can still lower your rates by making a few additions. Your insurance company can tell you which safety features and devices they offer discounts on for having them installed into your vehicle.

In addition to these money-saving tips for insuring new cars, drivers can save even more with special discounts available. Being a safe driver, students that make good grades and driving infrequently are just some of the ways you can qualify for discounts. Ask your local insurance agent what types of discounts they offer their customers that you may be eligible for.

Finally, make a comparison of auto insurance rates from different companies. Comparing quotes is one of the easiest ways to find lower auto insurance coverage. When insurance companies compete, you can find affordable coverage. Regardless of what type of car you buy, there are ways you can obtain reasonable auto insurance rates.