How to Keep Your Car Insurance Within your Budget
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Ask a New Yorker if they will want to trade living there versus anywhere else in the United States and its probable the answer will be a firm ‘No’. Despite the crime rates, ridiculously expensive parking, high cost of living and sky rocketing rentals, its residents say that the vibe they get from the place is just something else. Although there have been times when every New Yorker has gone over his/her stipulated budget and wonders “what now?”
There are a few areas in which your expenses can be cut down- one of them being your car insurance. You’ll be surprised that by just following a few tips, you can drastically reduce your car insurance premium and probably save that money for another expense.
First and foremost, please tell yourself that ignorance is not bliss. Not in this case, anyway. It’s important to look around and shop smart for the right car insurance. Compare car insurance rates from various insurers to get the cheapest car insurance in New York. There are websites that can be great and easy tools to help you compare and analyze prices from different companies. Evaluate by pricing, the company’s reputation, its customer service and the type of discounts and coverage it offers.
Companies look for complete and clean details, so make sure you provide these, especially the ones that could work to your advantage and bring down the premiums, such as telling them about any safety devices you have installed in your car, or a safe track record. This is the best time to advertise your great report card.
It’s also worth checking if grouping your insurance policies under the same provider works out cheaper than otherwise. If you have health insurance, for example, with one insurance company, ask them if they offer auto insurance as well. They’ll probably give you a discount on the basis that you are their existing customer and providing them with more business.
Consider dropping coverage that you don’t need. Collision or comprehensive coverage makes no financial sense for an older vehicle. If the car loans are already paid for, it may be a smart idea to slash this coverage as it makes up for a big chunk of your insurance premium.
Deductible is the amount of money you pay in the case of an accident, before the insurance company steps in. Usually, if you have a low deductible, the premium is higher. You can consider raising your deductible to enjoy lower premiums; however, consider this option only if you have the amount ready with you as an emergency fund at the time you may require it.
Buy a ‘low-profile’ car. In other words, buy a car that doesn’t scream for attention and cars that are not a typical target for radar guns and thieves. There are certain pockets which are known for thefts, sometimes it’s impossible to avoid such areas. Certain models and colors of cars are more likely to be stopped for speeding. Also, buy a car that’s cheap to insure. If other drivers of your model usually file expensive claims or file claims frequently, there are high chances that insurance rates for your car will be higher than normal.
Also, if you’re planning to renew your car insurance, don’t blindly accept a renewal quote from the same company. Experts say that often, big insurers aggressively chase new customers with the best discounts, sometimes even half of what existing customers are offered. This is in the bid to get in more customers. Ideally, you should try applying to your existing insurer and a new customer and find out if you are being over charged.
Bio
Sam is a chartered accountant who has moved from Chicago to Manhattan in New York City recently. He loves New York for its cosmopolitan crowd, great food and acceptance of people from all over the world. He usually writes about finance for novices, how to find the cheapest car insurance in New York and things your banker should tell you before you invest.
Category: Car Insurance, Uncategorized
