So you’re looking to buy an economy car. You want something that’s reasonably fast, economical, and safe enough for your purposes. Maybe you are moving into the city or have a longer work commute. If this is the case, then you’ll probably be wanting an insured economy car. But there are some things to consider when buying an insurance policy. Let’s look at the steps you need to follow for buying an economy car.
1) Get out your spreadsheet
So now that you want to buy an economy car, it means that you are probably limited in budget. This is good because it means you’ll be wanting the best deal on price. What this also means though is that before you can even think about buying an economy car, you need to take a look at your budget. Make sure that the price of insurance for this car is within your means. The premium needs to fit alongside petrol expenses and any other travelling costs. This probably means making sure you shop around for the best deal on insurance but don’t go for too cheap of a quote as that can come back to bite you in the future.
2) Get out your auto magazine
Before we make any decisions about cars, we need to know what we’re looking for and what there is on offer. There is nothing more annoying than buying something and later finding out that you could have got it cheaper or had an alternative. Auto magazines are an excellent place to start researching the different makes and models available as well as getting some crash test ratings and safety data. So before you look at buying insurance for your economy car, first find out what’s on offer!
3) Look at crash tests and fuel efficiency
As we’ve mentioned, auto magazines can give you a lot of great information. One thing they can’t give you is different car insurance quotes. To find your best quote, we need to go online and do some research on the various makes and models that are on offer and then see what insurers will charge. If you’re not sure where to start though, one good place would be the insurer’s own website. They will often have tools that can help you narrow down your search for an economy car based on things like safety rating, fuel consumption or price.
4) Compare quotes and buy the best deal!
Now that you know all about the makes and models available, what’s hot and what’s not, it’s time to start comparing insurance quotes online. Insurance comparison sites like Fairer Finance are an excellent way of finding the best deal out there that meets your requirements. The more you can narrow down your search before shopping for car insurance, the easier it will be to find the cheapest quote because you have already compared prices from various insurers.
5) Look at what you’re insuring
Wondering why some cars cost so much more to insure than others? Well, the first thing you need to know is that not all insurance policies are the same. There are some differences between comprehensive and third party fire and theft policies on what they will cover.
If you are looking for someone who can give you a simple answer as to why car insurance is tested on certain cars rather than others, then you’re barking up the wrong tree! However, it probably makes sense to have a look at what kind of third party fire and theft policy you have now as opposed to a comprehensive one.
It will probably be a lot cheaper because it only covers fire or theft, nothing else. If you have a comprehensive policy then that’s when the real fun comes in. Not only does this cover you for car damage, but it also covers your legal liability against any accidents you may have and loss of personal property due to vandalism or theft from your car.
6) Look out for add-ons
Car insurance companies will often try to sell you add-ons which you may or may not need. These can be good investments but it’s up to you to decide what’s worth the money and what isn’t. Seat covers, windscreen coverage and underbody protection are all pretty important, especially if you’re a young driver. Don’t be afraid to shop around and if possible, find out which add-ons the cheapest car insurance quotes include.
7) Consider gap coverage
Gap insurance is designed to cover you when your car gets written off and has an outstanding finance payment on it. This can be pretty important because it makes sure that you don’t end up out of pocket when your car is written off. This can be especially important if you are leasing or have an outstanding finance deal.
8) Think about how many cars you need to insure
Before signing off on any car insurance policy, make sure that you’re insuring everything. That means checking the number of drivers, policy expiration dates and even the make and model of the insured vehicle. Most policies will cover as many as five cars, as long as they are all registered to the same address.
How much does it cost to insure an economy car?
It depends on the make and model of your economy car. There are many things that influence the price of insurance, for example, safety rating, fuel consumption, price etc. If you want to find cheapest quotes possible, comparison websites like Fairer Finance are a good place to start. They will give you a good idea of what kind of prices are out there from different insurance providers and what is included in their economy car insurance quotes.
What is gap coverage?
Gap coverage or gap insurance is an option that you can add on to your current car insurance policy, which will pay out if the value of your car drops below a certain amount. This can be an important thing to have if your car is a lease or was bought with a loan. If you don’t have this coverage in place and something happens to the car, you can be in a lot of trouble when it comes time to hand back the keys.
Is it better to pay more upfront for car insurance or monthly, even if rates are cheaper overall?
If you can afford to pay more on your policy upfront, then that’s good. However, don’t try to just save money every month by not paying on time. You will eventually build up a bad credit score and that will immediately increase your insurance premiums. Try to get the cheapest economy car insurance quote possible to save money every month.
Why do some cars cost more to insure than others?
There is no straight answer to this question. It really depends on age, make and model of the car. Things like safety rating are also important when it comes to insurance rates for cars. Insurance quotes you get will depend on your specific circumstances as well – type of car, mileage etc.
Are there any tips for finding the best deal possible?
Yes, definitely! Comparing prices online before you buy your policy is the easiest way to find the cheapest insurance quotes. Things like location, driving history and credit score influence the price of your policy as well. Comparing prices will give you a good idea of what kind of discounts you could qualify for and how much money you can save on economy car insurance.
All In All
We hope you enjoyed our guide to buying an economy car. If you have any questions, please comment below and we’ll do what we can to answer them for you. And don’t forget that if the idea of economizing your auto purchase is appealing but not quite in your budget yet, there are plenty of other great deals out there on used cars at dealerships near you!