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10 Insurance-Smart Things to Do When Buying a New Car

By Insure U

  • In addition to sale or lease price, be sure to factor insurance premiums as you estimate your monthly car payment. Rates vary, so shop around to make sure you’re getting the best price. This is also a good time to check your credit history, as insurance companies may use that when determining your premiums.
  • Before deciding on your dream car, compare insurance rates. SUVs, convertibles and performance vehicles typically cost more to insure.
  • If reliable transportation for a new driver is all you need, consider buying used. Used cars can be more affordable, and if a car’s replacement cost is greater than a typical major repair, it may make sense to only purchase liability coverage, or if required, no fault (PIP) coverage.
  • Consider safety features, such as anti-lock brakes, side air bags, automatic seat belts, anti-theft devices and GPS as you negotiate your auto purchase or lease price. Safety-related add-ons can mean lower insurance premiums.
  • If you or your spouse/partner already have auto insurance, consider adding your new car to an existing policy to take advantage of multi-car discounts. If you own a home, you also may qualify for a multi-policy discount.
  • To avoid accidents due to mechanical failure and keep insurance rates low, schedule regular vehicle maintenance. Check your owner’s manual or visit the manufacturer’s website for a recommended schedule to check windshield wiper fluid, oil and tire pressure.
  • Pay attention to where you park. If you store your car in a garage or locked parking lot, you may qualify for lower premiums.
  • For minor fender benders, think twice before filing a claim. The number of claims you file can impact your insurance costs.
  • Download the free WreckCheck mobile app from NAIC. This useful tool outlines what to do immediately following an accident and walks you through a step-by-step process to create your own accident report. Check to see if your insurer offers reduced rates for agreeing to use a telematic device.

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