How To Save Extra Money on New and Used Car Insurance
Written by
J. Arky
Edited by
Rebekah Evans
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Cars are expensive no matter what kind of car you own. It could be new and driven right off the lot for a high price tag or used, coming with a variety of maintenance and repairs. Whether new or used, you will have to insure your vehicle, which is another expense that will cost you some money.
However, there are a few ways to save some extra money on new and used car insurance. GOBankingRates tapped some experts to find out how.
Get Multiple Quotes
“Whether your car is new or used, you can save some money by shopping around for auto insurance and comparing quotes from at least three companies,” said Maya Afilalo, senior editor and industry analyst at Autoinsurance.com.
“Even if you haven’t bought the car yet, you can often get an insurance quote if you have a sense of the vehicle you’re planning to buy,” Afilalo explained. “Companies offer different discounts and calculate rates differently based on individual factors like location, driving history and age, so you may pay less with one provider than another.”
Look Into Discounts Offered
“Check to see if your state offers discounts for defensive driving courses you can take,” said Alex Adekola, CEO and founder of ReadyAdjuster.
“There are states that offer around a ten percent discount when drivers take their state-approved defensive driving course,” Adekola added. “Aside from the financial savings, you’d also become a better, safer driver, making it a win-win situation all around.”
Drop Collision and Comprehensive Coverage
“If you financed or leased your vehicle, your lender will likely require you to carry comprehensive and collision coverage, which are often expensive,” Afilalo said, noting that collision coverage pays for damages sustained in an accident, regardless of who is at-fault, while comprehensive coverage pays for damages that don’t result from collisions, like theft, vandalism or extreme weather.
“If your vehicle is paid off, you can drop collision and comprehensive coverages — however, it’s usually wise to keep them, unless you drive an older, low-value vehicle and your premiums add up to more than the car’s value,” Afilalo said. “As a compromise, you can raise your deductible — which is the amount you pay before your coverage kicks in — just make sure you could afford the new deductible if you need.”
Consider Telematics Programs
“You can use telematics programs to save a lot of money on your insurance if you feel comfortable doing so,” Adekola explained.
Through these programs, Adekola described how an insurer keeps an eye on your driving patterns including braking, acceleration and general driving style, to assess how safely you drive.
“If you are rated a safe driver, your premiums can be significantly reduced,” Adekola said. “But be sure to find out how your insurance plans to use your data before enrolling in programs like this. You don’t want to agree to one of these programs without knowing how securely they’ll protect your privacy.
“Also, make sure you know the exact criteria they use to judge your driving as any driving behavior they deem negative could actually do the opposite you want to achieve and instead increase your rate,” Adekola added.
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