Insurance Tips & Information

Car Insurance Tips For First Time buyers:

Shopping for car insurance for the first time can really be nerve wrecking. Here are seven tips for first time auto insurance buyers that can save them money on their car insurance premiums.

First time car insurance shopping tips

1. The type of car you drive will definitely affect your car insurance premiums.

2. Collision is usually the most expensive component so you need to decide if you want it. Collision will cover accident coverage for your own car. Those people who do not take collision coverage apparently are self insuring their own cars while paying for insurance to cover damage their car may cause to others.

3.  Almost all car insurance companies will offer discounts to new drivers who have taken driving lessons from approved driving schools.

If you go to a driving school it is prudent to check that the school you select is indeed approved by Insurance companies. Discounts are given to new drivers who have a driver training certificates from recognized driving schools only. Don't just select schools based on price, check school to ensure its recognized.

Many drivers who already know how to drive may also find that in the long run it is beneficial to get a driving certificate before getting insurance as it does safe you more over the long period even with the cost of the driving lessons.

4. Don't assume that insurance rates are the same with all companies. They vary significantly. So shop around for car insurance to find the best rates.

There is also the option of getting a insurance broker who deals with many insurance companies to find the right insurance for you. As brokers they have access to insurance premium rates from many companies.

Auto Insurance Shopping

5. Insurance companies charge insurance premiums based on several factors. One factor is the type of car you are planning to insure.

Some cars are classed as high risk for accidents and others for high cost of repair. So before you head out and buy that sports car check insurance costs of various cars. If you want to save money you might be better off staying away from those high insurance premium cars.

Remember the type of car you drive will affect your car insurance premiums.

6. The approximate mileage you drive also makes a difference in your insurance premiums. If you are going to use the  car for pleasure driving and not drive to work it may help lower your premiums.

7. Increasing your deductible will also lower your premium. In reality when you increase your deductible you are self insuring your car for deductible amount. In case of a claim you will have to pay the deductible amount yourself.

Taking a very low deductible and paying a higher premium sometimes does not make much sense these days. In case of a claim many insurance companies raise premium rates when policies come up for renewal. Fearing this quite a few drivers don't bother to report small claims to their insurance companies and cover the loss themselves.

Select a deductible that you are comfortable with and will be able to pay in the unfortunate event you do have an accident.

Please note that information provided here is for information purposes and not meant to be professional insurance advice.