The “new car” smell, the ability to drive anywhere without fear of mechanical breakdown, a better sound system – undeniably, there are perks associated with buying a new car.
But, one of the most important parts of buying a new vehicle is auto insurance. It may not be as glamorous, but having the right car insurance is just as important.
With so many insurance companies out there, it’s hard to find the best company to do business with, and with insurance rates ranging far and wide because of so many variables, it can be extremely difficult when it comes to researching and comparing providers.
Looking for Auto Insurance Discounts
With so much competition out there, any given insurance company will have a number of discounts to offer prospective drivers, and you may qualify for one or a few of these discounts.
While not every insurance company offers these offers, some discounts may include:
- A bundling discount where you will get a more affordable rate when you use the same provider for things like life insurance, homeowner insurance, or even having another car insured in the same household.
- Good driver discounts are available to those who don’t have any traffic violations or any marks against their driving record. Some insurance companies can offer discounts up to 20% so explore your options.
- Good student discounts are great for first-time drivers. Depending on the provider, students can get a discount based on GPA, grade average, or even making the Dean’s List.
- Some insurance companies offer military discounts to current and former members of the military and their families.
- Low mileage discounts are given to drivers with the idea that if you drive less, you will be less apt to get into an accident.
- Automated payment discounts are awarded to those who set up an automatic debit that is synced up to a checking account or credit card.
- Taking a defensive driving class will not only teach you important techniques, but it could also save you some money. Ask around to see which companies offer this discount.
How to Avoid High Car Insurance Rates
Despite auto insurance discounts, there are a few other ways to keep your car insurance rates low.
The most important factor is owning a clean driving record. In the eyes of an auto insurance company, drivers without any car wrecks or DUIs on record are more inclined to remain safe drivers.
Other ways to avoid high auto insurance rates include:
- Keeping continuous coverage. Providers frown on chunks of time spent without any insurance, and it might even make you seem high risk.
- Keeping your credit score healthy.
- Making your insurance payments on time. Not only can this keep your rates down, but it might even qualify you for discounts.
How have you saved money on auto insurance?