Finding New Car Insurance
Your new car insurance is a significant financial decision, and like all financial decisions it deserves proper consideration to ensure that you end up with the right new car insurance for your needs. If you are offered new car insurance as a package deal with the car, politely ask for a discount off the selling price instead. You don’t want to be stuck with dud new car insurance that doesn’t meet your needs.
New car insurance will be a significant financial outlay. Make sure you have considered all the factors and chosen wisely. When you are planning your budget for buying a new vehicle, include the approximate amount of the new car insurance premium in your budget, to ensure you have the funds available on the day you take possession of your new vehicle.
Factors Affecting Your New Car Insurance
Insurers are essentially bookies, and new car insurance is no different. Your premium is like a small bet at long odds – if the unlikely event happens, and your car is stolen or damaged, your bet pays off. If you car is OK, you lose, and you forfeit your money.
This makes insurers very interested in the odds of all these events happening to you, so they can price the odds correctly and make sure they come out ahead, either way.
Things which make you more likely to have an accident, or have your car damaged or stolen, or have a personal injury claim associated with your car, will make your premium higher. Things which make those events less likely, or reduce the payout the insurer will have to make, will reduce your premium.
Your new car insurance premium will vary based on whether you have young drivers, and the driving records of all the regular drivers, as well as the car itself – the make, model, price, and features of the car.
Your new car insurance premium will also vary based on the postcode where the car is garaged, and sometimes even your credit score.
Some insurers will allow you to trade a lower premium against a higher deductible – the amount you pay when you make a claim. Needless to say, this is only a good idea if you are pretty confident you’re not going to need to use the insurance.
How To Get New Car Insurance
It is very easy to get new car insurance before you drive away in your new car. You can request temporary cover, called a “cover note” over the phone from any insurer. Once the cover note is issued, you have anywhere from three to 30 days to complete a full new car insurance application.
New car insurance in important, and often overlooked or rushed. Take the time to shop around, and really understand your options. Read the find print, ask questions, and make sure your new car insurance really provides the cover that you need.
There is nothing worse than getting to the point of making a claim, only to discover that your new car insurance doesn’t cover whatever just happened to your car. The $2.50 per month that you saved on the premium suddenly doesn’t seem like such a good deal, then.
It is much, much better to take your time in the beginning, and make sure that the new car insurance you choose is the right new car insurance for your needs. This article is for general educational purposes, and does not constitute advice of any kind.
This article is an extract from Mark Bennett’s comprehensive guide on attaining new car insurance, which is available from AllFinanceAdvice.com.
Mark Bennett is a staff writer for AllFinanceAdvice.com, and contributes regularly to other authoritative financial websites and publications.