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New York Tips for Car Insurance Savings

Whether you're facing financial difficulties or just wanting to save some money so you can take a better vacation next year, car insurance is a great place to squeeze out a few more dollars. With the tips below, it's simple and easy to save money on car insurance in New York. Some cash for groceries or money for a nice meal out can be yours, just for taking a little extra time to think about your car insurance situation.

Consider Your Current Financial Situation

Before you make any decisions about car insurance, it's important that you know as much as you can about your current financial situation. Look at the things you spend money on each month and rank them in order of importance. Then determine how much you want to spend on the things that are necessities (like rent, your mortgage payment, or groceries), how much you want to save, and how much you can spend on everything else.

This process should give you a good idea of the amount you can spend on car insurance. Whether you want a policy that will cover you no matter what happens or just want to carry minimal insurance on your vehicle, you'll have a ballpark figure that can guide the rest of the process.

Check Your Credit

Counterintuitive though it may sound, your credit rating effects your car insurance rate. If you have a high credit rating, the insurance company will assume that you are someone who does not takes risks and will give you a lower rate. If your credit rating is low, though, you are assessed as a higher risk investment for them and so will pay more in premiums.

Be especially careful to check your credit report for mistakes or fraud that might influence your credit rating. If you find any of these, contact the credit reporting bureau and find out how to challenge the listing. Do this before you go looking for car insurance, and your premiums will be lower.

Shop Around

After you know how much you can afford to spend on insurance, shop around. Whether you get an online car insurance quote from multiple companies, contact the company directly, or work through an agent or broker, this should give you a good feel for what the insurance you want is going to cost. And you never know what you might find! Sometimes, one company's price will be considerably lower than the rest or someone will be offering a special deal that you can snatch up right then.

Most people can save up to $500 on their car insurance just by shopping around. If you're talking to people on the phone or dealing with them directly, let them know that you're trying to save money. If there's a company that you'd really like to purchase insurance from, let them know that other companies are offering you a better deal but you'd still like to work with them. Sometimes, agents can find a discount that will lower your premium or can offer you a cut in fees that will meet the other company's offer.

When you're shopping around, be sure to test out different options. Ask what the price would be if you accepted a higher deductible on your comprehensive insurance, for example, or get a quote for the minimum required insurance as well as quotes for adding on each of the different options you're interested in.

Unless a company offers you a spectacular deal that is substantially lower than the rest of the quotes you've received, don't purchase insurance the first time you talk to someone. Instead, wait until you have all your quotes in front of you so you can find the best possible deal on the insurance you want and need.

Know What You Need

Before you make a final decision on which insurance to buy, know what sorts of insurance you want and need. New York requires minimal amounts of bodily liability insurance, property liability insurance, personal injury protection and uninsured/underinsured motorist insurance, so make sure you purchase these.

In addition, if your car is new and you're making payments on it, your lender will probably have some insurance requirements that you will need to meet. They may require you to carry gap insurance, collision insurance, and/or comprehensive insurance and will probably have minimum amounts of coverage you must have for each of these. You will need to be sure you carry these minimums, or your lender has the grounds to rescind your loan or get the insurance for you and bill you for it. Since the lender will not shop around for the best price, it is better for you to purchase this insurance on your own.

Finally, if your car is brand new or otherwise of high value, you'll want to consider getting more insurance than you might usually carry. If you can't afford to take the car as a loss in the case of an accident, you will want to carry collision and possibly comprehensive. Even if your deductible is high, it is a better deal for you to pay the insurance premiums than to risk having to replace the entire vehicle.

Once you've determined the level of coverage you need to carry in the different types of car insurance to best protect your overall financial situation, look at your quotes again. Make sure you've eliminated all coverage that is not essential, either because it is mandated by law, required by your lender, or because it protects your assets. This will help you cut your costs.

As part of this process, consider accepting a higher deductible. While a $100 or $200 deductible might be nice, you will pay significantly less in premiums if you accept a deductible of $500, or even $1,000. If you have the amount accessible in an emergency fund or other savings account in case you need it some day, you can save money now by paying less in premiums.

Also make sure that you've eliminated some of the extras that car insurance companies in NY sometimes attach to your bill. This can include fees for things like roadside service, adding another car or driver to your account, or paying monthly. If your company is adding these fees, call them and ask to have the fees removed or switch companies. Because these fees and others like them often go unnoticed, you can end up paying a lot more than you think for your automobile insurance coverage.

Once you know your financial situation, have checked your credit rating, get your list of quotes, and determine what insurance you really need, you should have all the tools you need to get the best deal you can on car insurance in NY. As you make your final decision, take into account which companies were easy to deal with and which ones made getting a quote seem like a hassle. When at all possible, choose the company that is simpler to deal with, as their claims process is probably simpler, too. After you buy your automobile insurance, rest assured that you did what you needed to do to get the best deal for yourself and your family.

 

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