Now that you have that new car, it’s time to think about protecting your vehicle. This is where car insurance comes in. Needless to say, the options out there are almost overwhelming. There are a lot of factors that play into what rates you can get. So, to help you navigate these waters, here are 4 things you should know about car insurance before you start shopping.
Know How The System Works
First of all, know that every state requires coverage for your car. If an accident occurs, your insurance plan will pay for the costs of repairs for/replacement of the vehicle that is covered. Now, when you first get car insurance, you will have a total balance that covers an entire year of protection (known as a premium). You can choose to pay that balance off in several ways, with many choosing monthly payments. Your plan also has a deductible, which is the amount you pay upfront for vehicle repairs (as a result of an accident). The most common deductible amounts are $250 and $500. This would be what you pay the repair shop while the insurance company covers the remaining bill.
Understand The Costs of Car Insurance
The cost of your car insurance can depend on things such as your location, age, driving history, etc. Your premiums and monthly payments can also be affected by your deductible. If you have a higher deductible ($500), your premium will be lower. This is because you are taking on more of the financial obligation for potential repairs to your vehicle. As such, insurance companies will be willing to lower the costs of your coverage. So, make sure to ask what factors are going into your premiums as you shop around.
Know The Type Of Coverage Your Car Needs
Speaking of factors, did you know your car insurance coverage also depends on if you have a car loan? The legal minimum state requirement is liability insurance (which covers the other vehicle’s driver if you were in an accident). However, if you have a car loan, your lender will almost certainly require you to have full coverage insurance (aka comprehensive insurance). This is because your vehicle technically belongs to them until you pay off your loan, so they want to ensure their property is covered in case of an accident. So, while your browsing around for car insurance, make sure you let those companies know if you have an auto loan.
Ask For Discounts
Discounts? Really? Yes, it’s true. There are multiple ways to cut costs on your car insurance premiums. For example, if you have a good driving record (3 years of no incidents) you can get additional savings. You can also receive discounts if you are a good student, have multiple vehicles under the same policy or have taken a defensive driving course. Have an anti-theft system or daytime running headlights? That can qualify you for savings too! These perks can really add up, so don’t forget to ask what discounts you can get for your car insurance plan.
Here at BlueSky Auto Finance, we give you the advantage of connecting you with several certified and trusted companies so you can compare rates, coverage options, and discounts. So, visit us online and let us help you find the perfect car insurance!