A new car is a luxury and a considerable investment, and owners naturally want to protect their latest acquisition. Choosing the best affordable car insurance, therefore, is very important. There is not a one-size-fits-all approach to finding the best insurance for new cars, but there are specific factors for owners to consider, as you will see in this article.
New Car Insurance Is Required by Law
Regardless of where you live, the law demands that you carry liability coverage. This minimum coverage reimburses for damage to other people and property when you are to blame in an accident. It does not, however, cover the cost of medical treatment for any injuries you may sustain or repairs to your vehicle in an accident that is your fault.
Some states require additional uninsured and underinsured motorist coverage for new car drivers. This extra protection covers you when you are involved in an accident with a driver who is carrying insufficient insurance or none at all. Check your state’s laws regarding insurance for new cars.
Additional Protections for New Cars
Beyond the legally mandated minimum requirements, you may also choose to carry collision and/or comprehensive coverage. Collision protection covers repairs to your new car regardless of who’s at fault, while comprehensive protection covers repairs for other types of damage, such as those caused by hail storms or vandalism.
If you are willing to pay a higher deductible, you can often include additional coverage for very little money.
Some extras are just that — extra. Weigh your needs against the costs of additional coverage. For instance, if roadside assistance is part of your new car’s warranty, you don’t need to pay for it twice. Similarly, if your family has more than one vehicle, you might want to forego rental reimbursement protection on your new car insurance policy.
Consider New Car Insurance Discounts
When shopping for the best new car insurance, always ask about discounts. Many companies won’t suggest ways for you to save even when deep discounts are available, so you must be proactive in securing the best rate.
Cut rates are often available for those with good driving records, and rates typically fall the longer you go without getting a ticket or into an accident. Students and seniors commonly get discount coverage as well.
Take Care with Your Credit Score
To secure the best value on your new car insurance — a nice balance between low price and good coverage — it’s important to display good financial behavior. Most car insurance companies use credit-based insurance scores to calculate rates. So drivers with maxed out credit cards and several accounts in collection are going to have a much harder time securing affordable new car insurance than those with a good financial track record.
If you are in the process of repairing your credit, be aware that your rates may go down as your credit score goes up.
Finding the best car insurance for your needs and budget is a complex process — one that requires weighing what you are willing to pay and the risks you are willing to take. To further complicate matters, insurance companies can change policies on seeming whims and rates continually rise. Regularly shopping around for the best new car insurance is time-intensive as well.