If you just paid off your car and are about to purchase a second vehicle, you may want to shop around before you make your purchase to make sure you buy the best vehicle for your needs. Choosing the right type of vehicle can help you save money on gas and car payments, but it can also help you save money on your car insurance. Here are three great tips that could help you save a lot of money when you go from owning one vehicle to two.
Choose A Car With Great Safety Ratings
The safety ratings on the car you buy will greatly impact the amount of money you spend on car insurance. Cars with the best safety ratings will offer a way for you to pay less on your insurance because insurance companies offer lower rates and discounts for cars with great safety ratings. Great safety ratings make the cars safer to drive, and the main result of that is fewer accidents. If people have fewer accidents, the insurance companies will have to settle and pay out fewer claims.
You can look at a list of vehicles by year to find one you are interested in, and looking at a list like this will help you know which vehicles are the safest. You could then choose from one on the list. Some that made the list for 2017 cars include Ford Fusions and Honda Pilots.
When cars are rated for safety, the ratings are based on a number of different factors. This includes whether the car has air bags, how well the car performs in crash tests, and how effective the tires are on the vehicle.
Decrease Your Insurance On Your First Vehicle
When you have a loan on a car, you will be required by your lender to have full insurance coverage on the car. Full-coverage insurance covers damages to your car if you are at fault for an accident. While having full-coverage insurance is nice when accidents happen, it is not something you legally need to have on a car that is paid off.
As soon as you pay your loan off, you will have the option of reducing the coverage to liability coverage only. If you drop your full-coverage insurance on your first vehicle to liability coverage only, you could save a decent amount of money. Keep in mind, though, that liability coverage will not cover damages to your vehicle if you cause an accident.
Bundle Your Policies To Save Even More
The other thing you should realize is that when you have two cars on the same policy, most insurance companies view this as bundling. Bundling is something insurance companies like, because it offers a way for them to insure more of your things, and they offer discounts for bundling.
It may also be worthwhile to talk to your insurance company at this time about your other insurance needs. If you have a home, ask them for a home quote. By doing this, you will be bundling even more, and this could offer an even larger savings for you.
Auto insurance is something almost everyone needs, but you do not have to overpay for it. With the right decisions, you may be able to reduce the amount you pay on your insurance. If you have not had an insurance consultation recently, you may want to schedule one if you are planning on buying a new vehicle. This will help you learn more about insurance rates and ways you might be able to save money on your insurance needs. To learn more, contact an insurance agency today.