Get Insurance Quotes for the Vehicles You Are Considering (Car Buying Tips)

Too many buyers stretch themselves too thin with their car payment before they even consider the cost of their car insurance. This is especially true of buyers who trade in an old car for a brand new car. In general, insurance will cost more for cars that are worth more since it would cost more to replace a more expensive vehicle.

You will need to know the details of your current coverage before you start getting insurance quotes for the car that you are considering. You could usually get an insurance quote from the dealership, but they will always pad it to take a cut of the profit. You will likely get a better rate on your own. Start by contacting your own insurance agent. Give your agent the year, make, model and, if possible, the VIN of the car that you are considering. Be prepared to answer any other questions, such as the size of the engine, the number of doors, any safety features, security features and any other factor that may affect the rate. Ask if your agent will need to run your credit report. If so, offer to share the results of the report that you ran for yourself. This will help to reduce the number of inquiries into your credit history. This is important since inquiries into your credit can reduce your credit score.

Do not stop there. Put the policy out to bid with other companies as well. Some people stay with the same insurance company for many years. They readily accept rate increases as a normal part of being insured. It is possible that they have not shopped for better rates and they may be surprised to find substantial savings elsewhere. This is an opportunity to re-evaluate your insurance rates for all of your family vehicles.

Written by a former car salesman, college math instructor, health insurance analyst and the author of The Car Buying Bible. This 162-page car buying guide is full of great car buying tips and offers the best car loan calculator around.