In September the Federal Reserve cut interest rates for the first time in four years. Many people who had been postponing making a large purchase like buying a house or a new car are now excited because lower rates make borrowing so much more affordable. In this blog, we will discuss how to navigate getting car insurance when buying a new vehicle. It can be a nerve-wracking experience if you’ve never done it before. Fear not, though! We have the answers you need to help you get the right coverage for your new car.
Why Interest Rate Cuts Matter for Your Car Purchase
Interest rates significantly affect the cost of financing a new vehicle. With lower interest rates, your car loan will have smaller monthly payments, meaning you will have more wiggle room in your budget or more flexibility in deciding which car to buy.
This increased affordability can also free up money in your budget for car insurance coverage. In many cases, you may also want to consider additional options like gap insurance to decrease your overall risk.
Shop for Insurance Before You Finalize the Car Purchase
Many people make the mistake of leaving car insurance to the last minute. However, it’s wise to talk to an insurance agent before you purchase your new vehicle. Not only will this allow you to compare rates and find the best policy for your needs, but many dealerships require proof of insurance before letting you drive the car off the lot.
At Navisure Insurance Group we can help you compare your options and explore bundling your car insurance with your homeowners or renters insurance to potentially save you more money.
Consider the Type of Vehicle You're Insuring
The car you purchase has a direct impact on the cost of your car insurance. Insurance companies calculate premiums based on factors like the car's make, model, safety features, and risk of theft. Vehicles equipped with features like anti-lock brakes, airbags, and advanced driver assistance systems are often eligible for discounts from insurance companies which could reduce your insurance premiums.
Don’t Skimp on Coverage Just to Lower Premiums
While it's tempting to select the minimum coverage to keep costs down, choosing a lower amount of coverage could cost you far more in the end if you do experience an accident or vehicle theft. With the savings you get from a lower car payment, you may have more room in your budget to get coverage that offers greater financial protection.
Think about what makes sense for your specific needs. If you're financing your car, your lender may require full coverage, including collision and comprehensive insurance. Even if it's not required, consider how a higher level of coverage could help you avoid out-of-pocket expenses if something happens to your new vehicle.
Take Advantage of Potential Discounts
Insurance companies often have a variety of discounts that can help lower your premiums. These include:
Multi-policy discounts: Bundle your car insurance with other policies like home or renters insurance.
Good driver discounts: Maintain a clean driving record to benefit from lower premiums.
Vehicle safety discounts: Choose a car with high safety ratings or advanced safety features to earn discounts.
Low mileage discounts: If you don’t drive often or live close to work, you may qualify for lower rates.
And then there are additional policy features like roadside assistance or rental car coverage which you may find helpful. At Navisure we take the time to talk to our clients, discussing their budgets and any possible risks in order to determine the best coverage for their needs.
Getting Car Insurance for Your New Car
Lower interest rates from the Federal Reserve make purchasing a new vehicle more affordable, giving you more room in your budget for car insurance. Take the time to talk to an experienced insurance agent, choose the right level of coverage for your needs, and learn about any discounts you may qualify for. This way you can get the right coverage without breaking your budget.
If you have any questions about getting car insurance for your new car or any other coverage for your home or business, contact us at Navisure Insurance Group. We will be more than happy to answer your questions and help you get the right coverage for you!
TROY VANDERMEER | VICE PRESIDENT
Troy attended Aquinas College in Grand Rapids, MI, and obtained a degree in Business and Technology. After graduating, he began his career as an insurance adjuster for a large-scale carrier. This included almost 10 years of experience, with roles such as property catastrophe, marine, and recreational vehicle claim handling. Troy learned the ins and outs of how insurance companies operate while also perfecting the technical aspects of the industry. This gives him an edge when working with clients regarding what coverage best fits their needs. As a proponent of leveraging technology, his goal is to simplify the process of getting insured without clients having to sacrifice their time.
In his spare time, Troy coaches high school soccer, enjoys golfing, fly fishing, and spending time with his family and friends.