Change your car and save money
If you’re in the market for a new car and want to save money in the process on your car insurance, then read on. More and more insurance companies are competing against each other for you. How? the internet of course. What does this mean for you? Lower Rates. You are now able to shop for the lowest rates because these companies are willing to give it to you. However, not many people shop for insurance like they do when shopping for cars and that’s understandable because some people likes staying with one company and never switch or renew car insurance. I believe that this is a big mistake because the power of the internet is there, why not take advantage of that and save some money?
Next step is looking for the perfect car that can save you a bunch of money on your premiums. Looking for these kind of cars doesn’t mean you have to settle for a less than perfect looking car. If you have cash flowing like water then by all means, buy whatever car you like. However if you like to save money like me, you will find your balance and be able to look for that perfect car with cheap insurance.
Ways to keep insurance cheap:
- Get a car with theft devices. Most cars these days have them on already so you should be able to get a little discount on that.
- Obviously keep your driving record as clean as possible.
- Get a four-door instead of two because a two-door tends to lean more towards the sports car crowd and insurance companies will take that into consideration also.
- Find out if your organization qualify for any discounts. Just ask.
- Check your commute mileage because they will ask you how far you commute to work or school and how often.
Different car insurance companies have their own way of calculating the risk. It can be where you live, your credit score and your driving record and most importantly, what kind of car you drive. Therefore when going out to buy your next car, the number one rule of thumb is not to get the most expensive and high performance car. Keep the balance and get a low profile car but still fun to drive.
16 Responses to Change your car and save money
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These are good tips. It is always nice when you can save a little on car insurance.
Not only on car insurance. Our house insurance is due this weekend and when I eventually got round to opening the reminder today, not only had the premium nearly doubled but they had set up an automatic renewal. I trawled a couple of comparison sites, got some quotes that were back to the old level and rang the offending company to say I didn’t want to renew with them. And saved myself almost £300 into the bargain!
We do this on car and house insurance every year. The car insurance this year saved £20 but hey – that’s better in our pocket!
The market only works if you make it work. Otherwise expect to get ripped off.
Wow very sneaky…glad you fixed that:D
I wonder how many people ever call their insurance company before they buy the car to ask what would be a better choice.
I don’t think anyone does
They go straight to the existing company and transfer
Good points! I think the one that is really important is to keep your record clean. It helped us in the past. Of course you never know what can happen but at least try to do what you can to keep it safe and clean. Don’t get DUIs!
Yes you never know what can happen. Something like a DUI is one of those things you can definately control
Great tips! I agree with krantcents–I’m sure it’s a very small minority that actually take insurance premiums into consideration when purchasing a car.
Good tips
Of course, you can also save money on car insurance by keeping a car around for a long, long time. Lower value typically equals lower insurance rates.
Too bad older cars generally have higher insurance premiums, but I think the tradeoff is worth it if you are able to save a bunch.
Also, if you insure everything with one company (home, life, auto), you generally get a discount.
I guess if you’re talking about the old old cars with no air bags or security then okay. But usually the age isn’t as important a factor. It’s the type of car.
Another question you will have to answer is where the vehicle will be kept. Premiums can be lower when stored in a garage rather than a car port or on an open parking lot. The zip code (you mentioned where you live) is also of relative importance since statistics on auto thefts by location are tracked by the insurance companies.
You may want to check the facts on the 2 vs. 4 door. Hank @ Money Q&A ran a post earlier in the week that disputes the theory of sports cars being more expensive to insure. I don’t have any expertise, both concepts can’t be 100% right
Also, don’t get into accidents and avoid speeding tickets. Best thing to do it shop around for cheaper insurance.
maybe invest in a radar detector, doesn’t have to be expensive
Great tips. Also a great reminder to see if we can save some money on our car insurance, renewal time is in a couple of months.
It’s important to shop around for any insurance. Insurers tend to update their rate tables at different times throughout the years. It guarrantees that some insurance will be either at a discount or overpriced. It also guarrantees that at some point, your current insurance will be overpriced.
The savings probably won’t put your children for college, but shopping for insurance is almost guarranteed to lower your insurance costs.