You’ve worked hard, saved up the money, and finally gone out to purchase your dream car. Once the papers are drawn up and the checks are signed, you may think that you’re in the clear, but you’ve still got more cash to fork over before everything is said and done.
Car insurance is never cheap, especially for newer sports cars and luxury automobiles, but in recent years rates have been skyrocketing. While insurance premiums typically go up at 3% to 4% annually, 2016 saw a rise of 7% from the previous year. Whether you blame more commuters on the road, texting drivers or rising medical costs, the fact of the matter is that costs are on the rise and show no sign of slowing down. Luckily, there are a couple of things that you can do to keep your insurance rates manageable.
When it comes to auto insurance, you want to find the highest level of coverage possible for the lowest price. Different companies will offer varying rates based on age, gender, and driving history as well as the make and model of your car. Before deciding on an auto insurance provider, look at quotes from several different companies to see which can offer you the coverage that you need at a price you can afford. If you’re already insured, you still may be able to save hundreds of dollars by switching providers. It never hurts to check.
Look for Discounts
While not all insurers offer safe driver discounts, many will decrease your rate based on factors that make you a low-risk customer. Many companies offer discounts for drivers who have taken registered courses, including new drivers who have taken a driver-training course, older drivers who have taken a refresher course, and individuals who take a defensive driving course. Certain providers will also offer discounts to students with good grades as well as college alumni and industry professionals.
Improve Your Credit Score
Depending on the state that you live in, insurance providers may use your credit score to determine your premiums. Maintaining a good score indicates that you’re less of a financial risk to the company. You should regularly check your credit report and correct any errors on it to ensure that you’re not paying more than you need to in insurance premiums. If you have a poor score for whatever reason, you may be able to ask your insurance provider for an exception.