How Owning Your Car Can Save You on Car Insurance

As you get ready to purchase your next car, you may be focused on makes, models, features and monthly loan payments. Yet, you also need to factor in the cost of auto insurance on the new vehicle. Depending on the age and type of vehicle you are purchasing, your car insurance payment may be significantly different than what you are currently paying. For those who want to keep insurance costs low, it's important to buy affordably.

Should I Loan, Lease or Buy Outright?

For those who are considering their purchase options, it's always beneficial to purchase outright rather than take a loan on a vehicle. The cost savings on interest is substantial. In addition, owning your vehicle instead of leasing or buying it on credit can reduce your car insurance costs. This also gives you more options and flexibility in selecting a policy that is right for you.

On the other hand, if you purchase a car with a loan or through a lease agreement, the loan or lease-holder will require that you maintain comprehensive auto insurance on the vehicle throughout the time entire contract. This helps those companies protect their investments since they know their vehicle is protected. Comprehensive coverage is usually the most coverage available and tends to cost more than other insurance plans.

If you do plan to buy your car with a loan or a lease, it's important to choose a vehicle that remains affordable to insure. Sports vehicles and luxury cars are the most expensive and can be the hardest to insure. If you purchase a vehicle that has ample safety features built in, you could save money on your auto insurance. When shopping around, be sure to ask for any available discounts for the new vehicle from your auto insurance provider as well.

Before you purchase your next car, call your auto insurance provider beforehand and quote for the vehicle you are considering. With a quote in hand, you'll be better equipped to purchase a vehicle that is the most affordable for you.