Before you drive home any vehicle you’ve purchased at our Mazda dealership, you’ll need to arrange insurance for it. Finding coverage for your vehicle isn’t difficult, but understanding how car insurance works can save you money and help you make a better choice. Here’s what you need to know about insuring your next vehicle.
4 Things to Know About Car Insurance for Your Mazda Dealership Vehicle
1. Your Credit Matters
Your credit likely played a role in determining the type of financing you aranged for the vehicle, and it can have an impact on how much you pay for insurance as well. Insurers evaluate certain credit characteristics in determining how much of a risk you pose. Your history of on-time payments, the amount of debt you have, the type of credit that you have, and any new credit applications you’ve recently submitted are all factors that insurers may look at.
2. Paying in Full May Save You Money
Not everyone can pay their insurance premiums in full and up front, but if you can, it may save you money. When you pay for insurance in installments, it creates more work for the insurance company, so they may charge you administrative fees or add surcharges to the amount you owe. Before paying your premium, ask about any discounts you may receive for paying up front.
Paying your full premium at the start of your policy also means you won’t have to worry about late or missed payments.
3. Don’t “Set It and Forget It”
Premiums can vary significantly from one insurer to another, so rather than setting your policy to autorenew every year, it’s worth taking the time to shop around every 12 months to make sure you’ve got the best rate. And before switching to a new policy that will save you money, check to make sure the level of coverage and the deductible is comparable.
4. Understand What a Higher Deductible Means
As you’re shopping around for an insurance policy, you’ll find that having a higher deductible usually results in lower premiums. Before making the jump to a high-deductible policy, give some thought to what this means. A higher deductible means that in the event of an accident or another loss, you’ll have to cover a larger portion of the damage yourself before insurance kicks in.
While a higher deductible can cushion your monthly budget by reducing your premiums, you’ll want to make sure you’re financially able to cover that deductible if a loss occurs.
Following a few simple rules of thumb can help you arrange great insurance coverage for that new set of wheels. When you’re ready to purchase your next vehicle, head to Tom Bush of Jacksonville.
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