Unless you can afford to pay cash for your new vehicle, you are going to be caught by the terms of the standard auto loan. Because people who lend money prefer to have some security, they make it a term of the loan that you carry both collision and comprehensive insurance. That way, if your vehicle is totaled or stolen, there will be a reasonable amount of cash available to pay off what you own. When thinking about this, remember you lose sales tax the moment you drive the vehicle away. You also lose the most depreciation in the first year of ownership. This means there’s often a gap between the amount you will receive from the insurance company and the amount you owe on the loan. This can make it economical to take additional cover for the gap.
In your search for cheap auto insurance, check the terms of the auto loan. Some give the lender to right to refuse an insurer or a policy. If the lender thinks you might struggle to get a quick or full settlement from an insurer, you should listen. Now as to the general insurance question. This starts with the choice of make and model. Insurers always allocated the cheap auto insurance rates to the cars with the best safety records. Since parents with children aboard usually have the lowest accidents, this means most of the cheap-to-insure vehicles are family-friendly. The other factor is the star rating from the National Highway Traffic Safety Administration. Look for the guides published both by the NHTSA and your local Insurance Commissioner on which vehicles are cheapest to insure in your state. Knowing this before you go out to buy your new car finds the cheap auto insurance.
Now it comes down to the fine tuning. Assuming you picked the model with all the safety features built in, now check with the insurers whether there are additional discounts if you fit antitheft devices or a GPS tracker. You need to find the right balance between the cost of installation and the amount you save on the annual premium. Often there’s a sticker shock. People who have had an older vehicle for some years get used to paying cheap auto insurance rates. That makes it particularly important both to shop around and then check the quotes include all the discounts to which you are entitled. Too many times insurers work on the basis that, if you don’t ask, you don’t receive. If the premium rates being quoted are still to high, look carefully at what cover you are being offered. Some insurers add in all the components as standard, leaving it to you to opt out. For example, look at the cover after an accident. If you are being asked to pay for roadside assistance, towing, storage and rental of an alternate vehicle while yours is being repaired, see whether any of these items can be taken out of the cover.