Car insurance can be expensive.
In fact, in the worst cases car insurance premiums can be many thousands of dollars each year. So rather than getting a nasty surprise after you’ve put a deposit on your dream car, it is worth getting an idea of the insurance costs first.
Almost all car insurers now offer online quotes, most of which are quick and easy to complete, so it is a relatively simple process to get an indication of what your car insurance costs will be based on your personal circumstances, such as where you live and your driving history.
Stage 1 – Deciding which cars are ‘on the list’
Insurance costs can vary by the car’s make and model. Getting an online quote at the evaluation stage might identify an insurance blow-out and save you the time of test-driving a car that is too expensive for you to insure.
Stage 2 – Found the car you want to buy
Once you’ve got the specifics of the car you want to buy you can get a more accurate insurance quote to be sure it is in your budget. Extra features and modifications can push up the premium.
Stage 3 – Buying the car
If you’re using a secured loan to buy the car, the lender will usually require proof of insurance before they settle the loan.
If you’re paying for the car outright without borrowing, remember to organize your car insurance so you’re covered when you pick up the car.
The difference in insurance premiums can be significant and there have been a number of new car insurers heating up competition. Shop around and you could save hundreds, even if you’ve been with one car insurer for years.
Some car insurers offer discounts for buying your policy online. If you’re comfortable you’re buying the right cover for you, it could be a way to save 5-15% just for buying online.