Car insurance is one of those items many consumers simply assume they have to pay for and rarely shop around as much as they should however one of the biggest things you can do to save money on auto insurance premiums is understood when to contact an agency for a quote.
Purchasing a new car can be quite exciting and people can spend hours researching consumer reviews, playing around with an auto loan calculator, dreaming about options such as the newest GPS system, and even slightly veering off the affordable path once in a while to imagine themselves sitting in a red Lamborghini Gallardo driving the Miami beach but what about car insurance?
Your total monthly obligation for purchasing a car is not just your loan payment but also your car insurance premiums. Any wise consumer should want to know the total monthly financial obligation before committing to the purchase of a new vehicle. While many new cars have very affordable car insurance rates it’s also very possible to save well over $100 a month simply by buying a vehicle from last year’s inventory. Car dealers often offer great bargains on models unsold from the prior year and these cars still come with the same warranty. Anything new is certainly cool but isn’t saving money cooler?
What Questions should you ask a Car Insurance Company?
Finding the best car insurance rates is probably less of a challenge than choosing what car to buy but you still need to understand what questions to ask any potential provider. Some of the most common questions should be:
- How much is GAP insurance (especially if you are leasing or buying a new model car)
- What car insurance discounts are available?
- How much is car insurance for last year’s model of the same car?
- What payment options are available?
- Will my spouse be automatically covered – or how about my teenager and other family members?
- Is it possible to get a discount if I have another vehicle already insured?
- What safety options should I look for when buying a new car to save money on car insurance?There are many more questions so always do a Google search on terms like “save money on car insurance” or “car insurance rates for XYZ model” and try to pass websites that just provide quotes but focus on those which provide educational information on auto insurance coverage. The lessons learned when shopping for car insurance can usually be applied over and over again with each car purchase so what you learn today will probably save you money many times
down the road.
Should I buy car insurance from a Car Dealer Recommendation?
No. Anyone recommended by a car dealership you should stay away from. The reason for this is not because the particular licensed agent or company may have higher rates but it’s about keeping anyone who has a potential conflict of interest away from your goal of finding the most affordable rates. Many industries work on the “I’ll scratch your back if you scratch mine” method so even though kickbacks for customer referrals are often prohibited by law it doesn’t mean Johnny the insurance agent cant find a way to buy a car salesman a few drinks one night in return for the referral. So when you get advice from a car dealership about who to contact about insurance it’s better to simply say thank you and start your own search online.
Before purchasing your next car always contact and compare car insurance companies before signing an auto loan agreement. You may be surprised by just how much you can save with the right information.