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Cost of Car Ownership

honda pilotThe move from teenage to adulthood is confusing enough, people expect you to behave like an adult while you have no clue how it works. You are making your first independent steps into the big world out there, learning new things at the university or trying your hand at different things, testing the waters or just taking things as they come. Money is hard to come by and you have begun to realize that there are no ‘free lunches’ in this world.

Owning a car makes your life easier, but everything comes at a cost. The cost of the car and the fuel expenses aside, buying an insurance is another major expense that comes with owning a car. Life is not easy for young and first time drivers as insurance companies see them as high risk drivers and therefore keep a high premium for them.

The good news is that if you are smart and do your homework well, you could get yourself a good deals when insuring your car. Here are some tips!

Decide on what level of cover you need: Insurance companies offer a range of different levels of coverage on car insurances. A liability coverage, which is the most basic and mandatory level covers the damage you may cause to other drivers and vehicles. Vehicle coverage will cover damages to your vehicle and a medical coverage covers any medical expenses for you, your passengers or others if an accident happens.

Become a certified driver: Go to a driving school and complete a certified driver’s education course to prove to the insurance company that you are a safe driver. Most insurance companies offer lower premiums for a certified driver as he or she is no longer considered a high risk driver. The savings you make will definitely offset the cost of going to a driving school.

Choose your car wisely: Expensive cars, bigger cars, powerful cars, fast cars and generally cars with higher repair costs have a higher premium, same goes for new cars. Getting a used car as your first would significantly reduce the insurance premium you would need to pay.

Buy insurance online: It is a good idea to go online and do your research on insurance policies before you get one. You could compare deals online and get the one that suits your needs best. Buying your insurance online will help you save some bucks as most companies offer discounts on online purchases.

Get a package deal: Most insurance companies offer package deals that enable significant savings if you purchase all your different insurance policies from them. Try to buy a policy from the same company your parents bought their home and personal insurance from.

Get student discounts: Most insurance companies offer discounts on premiums for students who do well in school as they consider students with good academic records to be less likely to be involved in an accident. You can find out from your DMV what qualifies for a student discount.

Attach your policy with that of an experienced driver:  You could attach your insurance policy with a parent’s policy and get a lower premium. Make sure that the ‘experienced driver’ you choose has a clean record and less number of claims.

Pay yearly and not monthly:  Your insurance premium for a year could add up to a sizeable amount. However, you can save a lot of money if you can afford to pay it for a whole year at once rather than on a monthly basis.

Fulfill criteria for discounts:  Most insurance companies offer lower premiums if you reduce risks to the company. Installing an anti-theft device or a tracking device on your car would help reduce your premium. Some companies offer discounts for eco-friendly hybrid cars. Do your research and find out what works best before you buy your policy.