5 Insurance Tips for Buying an Economy Car YesEnsure

5 Insurance Tips for Buying an Economy Car

Just because a car is economical to buy doesn’t mean it’s inexpensive to insure. In fact, there are several insurance considerations that apply specifically to the purchase of economy cars. Here are five important tips from Safeco Insurance :

1. How old is your current car?

A new vehicle usually means a new insurance policy. If your car is a total loss, the payment from the insurer could be more than what it’s worth – leaving you with nothing to buy a replacement.

2. What about safety features?

If you have a young driver who will be operating an economy car, consider buying one with additional safety features such as side airbags. These could translate into insurer discounts that help lower your premium.

3. Does the car have anti-theft devices?

If the vehicle has standard factory anti-theft devices, you can probably qualify for an additional discount from your insurer – assuming those features weren’t affected as a result of the accident. Even if they were, it’s always worth asking.

4. Where you live plays a factor?

The cost of living in your area may affect your insurance premiums, so it pays to shop around for quotes from several different insurers. Factors like the number of claims filed by other drivers on your street will also be part of the risk assessment process and can lead to higher rates.

5. What about used cars?

If you’re buying a pre-owned vehicle, take extra steps to protect your investment and verify the car’s history before signing on the dotted line. Ask for documentation such as service records and repair bills. If available, review information from Carfax or other similar databases that provide important details like damage reports, mechanical issues and theft records.

It’s also a good idea to take the car for a test-drive and get it inspected by a qualified technician before purchase. This will help identify potential problems that may trigger higher insurance rates or even void your policy if you’re unfortunate enough to be involved in an accident.

Keep in mind, however, most insurers won’t insure a used car that’s more than 10 years old.

Does the car have anti-theft devices?

If the vehicle has standard factory anti-theft devices, you can probably qualify for an additional discount from your insurer – assuming those features weren’t affected as a result of the accident. Even if they were, it’s always worth asking.

What about used cars?

If you’re buying a pre-owned vehicle, take extra steps to protect your investment and verify the car’s history before signing on the dotted line. Ask for documentation such as service records and repair bills. If available, review information from Carfax or other similar databases that provide important details like damage reports, mechanical issues and theft records.

Where you live plays a factor?

The cost of living in your area may affect your insurance premiums, so it pays to shop around for quotes from several different insurers. Factors like the number of claims filed by other drivers on your street will also be part of the risk assessment process and can lead to higher rates.

It’s also a good idea to take the car for a test-drive and get it inspected by a qualified technician before purchase.

This will help identify potential problems that may trigger higher insurance rates or even void your policy if you’re unfortunate enough to be involved in an accident. Keep in mind, however, most insurers won’t insure a used car that’s more than 10 years old.

All Things Considered

The tips we’ve given you are geared towards helping people who have a tight budget, but they can also be applied to any car purchase. We hope that these 5 insurance tips for buying an economy car were helpful and gave you the knowledge necessary to make an informed decision. If not, comment below with your thoughts on what else might have been useful in this post!

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