What First-Time Car Buyers Should Know About Auto Insurance
What First-Time Car Buyers Should Know About Auto Insurance
When you are in the process of buying a vehicle for the first time it is important to be prepared for your purchase to ensure the transaction runs smoothly. Most first-time car buyers are concerned about the purchase price of the vehicle and overlook the importance of quoting vehicle insurance NJ before they drive off the lot. Knowing how much you will be spending out of pocket to run and maintain your vehicle is extremely important. If you fail to quote insurance premiums for various models of vehicles, you could end up spending far more than you can afford. Understand how vehicles are rated when you are comparing vehicles and make a wise decision for your future.
Many first-time car buyers do not understand how a vehicle is rated. The automatic assumption is that more expensive vehicles have more expensive premiums. While this is true in some cases, this is not always a fact. Inexpensive vehicles can carry higher premium ratings depending on their accident statistics in your area. For example, a value-priced Honda Civic often costs more to insure than a 4-door sedan produced by the same vehicle manufacturer. This is because younger drivers tend to drive the Civic and accident rates are higher in the lower priced vehicle. To avoid spending too much on auto insurance you should call a reputable agent in your area and discuss how the vehicle is rated to get an idea of how much the premium will cost.
If you have never purchased car insurance NJ chances are you are not familiar with coverage options. If you are financing your vehicle, you will be required to carry physical damage coverage. Physical damage coverage will carry higher premiums for new drivers because you will pose a higher risk to the company. If you want to conserve premiums, it is recommended to choose a higher deductible to offset the cost of the coverage. The deductible is how much you will be responsible for paying to repair your vehicle in the event of a collision or covered loss. Only choose a deductible you can reasonably afford. The most common deductibles are 100, 250, 500, and 1000.
Some auto insurers will offer discounts for vehicle safety features. If you have an after- market security system be sure to advise your agent in order to receive a lower premium. Air-bags, safety belts, and other standard features will automatically receive a discount because it is reported on the VIN of your vehicle. If you are a new driver, ask about additional discounts that you may qualify for to receive a lower premium.
Purchasing a vehicle for the first time is scary and exciting. When you are pricing cars and registration fees do not forget to price the cost of insurance NJ. With a little research, you will invest in a reliable vehicle that does not cost an arm and a leg to insure.
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