Car reviews, motoring articles, tips and more!

Articles

The New Auto Insurance Conspiracy Theory

When you signed on the dotted line for your new auto, it seemed like you were on top of the world. You went shopping at the right time, and felt like you got a steal on the price. And then, the insurance bill came in the mail and the bottom on your perfect little world dropped out. What happened? People buying a new auto for the first time may not realize this, but the bank will require them to keep full coverage on their car for the length of the loan. Now, you can get away with only liability coverage when you don't finance a car - but things work a lot differently when the banks get involved, don't they? You might even think that there is some sort of conspiracy going on involving the banks and insurance companies. While it is a good theory, the truth is that banks need to be sure that they will get their money, so they require full coverage insurance on a new auto.

After all, who would continue making payments if the car were all smashed up because of an accident? But why are these rates so high? A lot of factors are involved in determining insurance rates on a new auto. The age of the driver, his driving record, the number of accidents on his record, and even where he lives - all these are factored into the rate. Because the costs of repairing a new auto are so high, insurance companies have to charge steep rates to recover their losses in the event of a wreck.

Isn't there anything I can do to lower these rates? Auto insurance on newer vehicles will be steep, but there are things you can do to get lower rates. One of the best ways to save money is to shop around. While all insurance companies use statistics to set their rates, they do not all interpret these statistics the same way. Never, ever insure your new auto with the first company you call! You can also raise the deductible you will pay in the event that you wreck your new auto, and in return receive lower rates. The higher the deductible, the lower the auto insurance premiums for your new car will be.

Come on, what else can I do? These rates are killing me! All right, let's start with the obvious: Slow down. Don't drive your new auto like some Nascar speed demon! Tickets and moving infractions will definitely increase the rates for your new auto insurance. You can also try driving less, because insurance companies consider it to be less of a risk when people drive fewer miles with their new auto. Plus, this may increase your resale value down the road, when it is time to buy another new auto. Insurance rates on a new auto, or an old one, are greatly affected by where you live.

If the rates truly bother you, consider moving to some less populated area with a low crime rate. Buy an alarm for you new auto, and be sure to keep it in a garage when you sleep at night. Is that it? Well, there's no guarantee that the insurance rates on your new auto will ever be great, but you can also try improving your credit score. Insurance companies see a correlation between credit score and driving habits, so they tend to give better rates to people with better credit. But in the end, insurance for your new auto will be significantly higher than the liability coverage you had when you were driving that "beater" that got you through college.

Hey, that's just part of the price you pay for driving a new auto. There are definitely ways to improve those rates, but you'll need to get used to the fact that the good old days of "liability only" coverage are behind you.

Albert Medinas has developed and maintains the website New Auto Junction, which answers the most common questions people have about purchasing a New Auto. Please visit us at http://www.newautojunction.com today.



Car Reviews






Supplying Your Own Auto Parts to Your Mechanic - Buying auto parts online is no longer just for do it yourselfers.

How High Can Gasoline Prices Go - Do you ever get the feeling that you as a consumer are being tested to see just how much you will pay when it comes to the skyrocketing gasoline prices we are continually facing? It seems that everyday the media is reporting that the cost of a ba.

Things You Should Know About Towing Equipment - If you are looking for a towing company to use the next time you are in a jam that involves either your car refusing to move or your car getting crunched at a four-way, then you need to arm yourself with some basic information regarding the type o.

Mercedes EClass Harnessing The Wow Factor - Mercedes is about to release its all new E-Class to the European market this spring, with its North American debut scheduled for some time in the fall.

Show Plates Anyone - Show plates are a thing of beauty and to the eyes of the owner of the car or bike they belong to; they make a statement of who they are.

more...
Welcome to Diamond Motoring!
 HOME
 CAR REVIEWS
 MOTORING ARTICLES
 RESOURCES
 WEB DIRECTORY
 SITE MAP
 

What's hot in today's
MOTORING WORLD:


Car Reviews
Motoring Articles
DiamondMotoring.net © Copyright 2019, All Rights Reserved.