Buying a car can be expensive no matter how you spin it. And then there’s the vehicle insurance that you need to secure along with that. But what’s more costly is purchasing an insurance plan that isn’t actually worth the money you spent! So here are some tips for you to avoid that and hopefully be able to make better decisions.
Look Into The Agency’s Payment Scheme Alternatives
Insurance agencies will naturally endorse financing option that benefits them the most. But it doesn’t mean they only have that one method, so make sure you ask about other options. You should also ask about hidden fees and things like that because they can definitely add up. Aside from that, you should find out things like what will happen if you miss a payment or will your payment have to be made monthly or quarterly? All these things will allow you to figure out if their payment scheme actually suit your current ability to pay.
Pay For What You Need Only
Sometimes, just to entice more people to avail a car insurance, dealers include a lot of “promos” in the package to make you feel like the coverage is such a steal. However, don’t be easily swayed by this because more often than not you’re actually getting freebies you don’t really need. While add-ons like Motor Club, Travel Club, and Accidental Death Insurance are good too, they will only costs you more than you need to because they’re seldom made use of. To get a better coverage, it would be best to choose things like collision coverage, liability and property damage, and bodily injury coverage because these are the things that are actually often used.
Pay For Your Car In Cash If You Can
If you can afford to shell out a huge chunk of money in one go, better if you purchase the car in full cash. A lot of hidden charges are tied to financing and credit so you end up saving more money by doing this in the long run. Plus you will not be obliged to purchase insurance to deal with the expense of the car in the event it is broken whatsoever.
Check Driving Record
Check for blemishes on your driving record. Violations on your track record can affect your auto insurance fees, and it is probable that there is old or wrong information on yours. Learning what’s on your driving record long before you seeking out insurance will allow you to know what you should deal with ahead of time.
Know How To Switch Car Insurance Properly
While you may have found the most suitable insurance plan for your current situation, you may come across instances that will force you to switch to a new one. That’s okay, but you have to make sure that you make proper arrangements when cancelling your old one. Otherwise you may end up paying for two insurance policies at the same time which isn’t exactly ideal.