Being a new driver is very exciting. For many, it is their first taste of real freedom. While the open road is enticing, it does come with certain responsibilities. One of those responsibilities as mandated by the law is purchasing car insurance. Car insurance can sometimes by very expensive. However, there are ways to save. Below is a list of different ways for new buyers to find cheap car insurance.
1. Student Discounts
One thing you may not know about car insurance is that many insurance providers actually offer discounts to students. However, you can only obtain this kind of discount if you have consistently good grades. The rationale is easy to understand. High grades prove that a student is responsible, and that responsibility is likely to translate to defensive driving. If you have a B average or higher, bring your report cards with you to the insurance office. You may be able to get a discount as high as 15 percent.
2. Other Discounts
There are also a plethora of other possible discounts you can obtain. For example, if you install an anti-theft device like “the club” in your car, the insurance company may give you a discount for it since it certainly lessens the possibility of your car being stolen. Make sure to ask about the different possible discounts available when you inquire about a company’s car insurance policies.
3. Choosing the Correct Car
You should also be aware of the fact that the car you choose will determine the premiums and deductibles you are forced to pay. For example, you may be tempted to get a convertible sports car. While these vehicles are certainly attractive to nearly everyone, car insurance providers know they are inherently risky. If a car has an engine with more horse power that can go much faster than other cars, it’s only logical to assume that the owner will want to drive faster and be more aggressive on the road. This creates a higher probability of being in an accident. If you want to save on insurance, consider getting a model that is designed for utility as opposed to speed.
4. Choosing the Right Amount of Coverage
The kind of coverage you choose can also make a big impact on what you are forced to pay. There are many different kinds of coverage such as liability coverage, collision coverage, comprehensive coverage and more. In most states, you are usually legally required to purchase liability coverage. Liability coverage protects against things like property damage, physical injuries and other drivers’ lack of insurance. Choosing any additional coverage may be left up to your discretion.
While you can choose the minimum coverage to save money, it may not be a wise idea. For example, collision coverage covers damage that is done to your car during an accident. Without it, you’ll be paying for the entire repair bill out of pocket. Inexperienced drivers of course have a higher likelihood of being involved in crashes. Even if the coverage raises your premiums, it’s still a good financial decision to obtain collision coverage.
5. Choosing the Right Company
Once you have decided on the car and the kind of coverage you want, you should begin shopping around for the right insurance company to purchase your policy from. Do not start and end your search with one company. Even if you end up choosing the first company you considered, it’s better to have multiple quotes from different companies. This gives you more leverage when you are bargaining for a fair price for your premiums and deductible.
The phone book is a good place to look for local companies. However, you should consider the vast resources of the internet as well. You can obtain a quote on a policy within minutes on different websites. Even if you don’t accept the offered price, it’s good information to have for comparative shopping.
Sam Petterson is a freelance writer out of the University of Toronto. He is currently working in affiliation with My Insurance Broker on creating a knowledge base pertaining to the diverse world of insurance. The intricacies of Home, Auto and Business Insurances’ are a few of the various products Sam delves into at www.insuremetoo.com. For Contact 905-695-2080