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What To Budget For Your Monthly Auto Insurance Premiums
Author David Schneider | May 23,2007
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Few things in this contemporary existence of ours are more thrilling than the prospect of getting a new car. The iconography of the automobile is so deeply embedded into our collective national psyche that it seems happiness is literally impossible without having your own set of wheels. And yet, as any car owner can attest, there are many concerns and potential burdens associated with owning a vehicle. Primary among these is the need to get and maintain a comprehensive insurance policy that will protect you from any unexpected occurrences on the road. And while insurance always brings valuable peace of mind, it does not always come cheap. There are a number of mitigating factors that determine how costly your monthly auto insurance premiums will be, and the more carefully you can budget out these costs, the less likely you will be to receive some nasty surprises in the future.
The purpose of this article, therefore, is to identify some of the key items to keep in mind as you assemble a comprehensive car insurance budget. When you are armed with knowledge, you are always less likely to make mistakes that may prove costly in the long run.
Comparing Rates Is Now Easier Than Ever
The good news is that, thanks to the Internet, comparing auto insurance prices has never been easier or more efficient. But you must bear in mind that in order to get an accurate idea of what your payments will be like, you must be brutally honest with your prospective agent about both the status of your vehicle and your own driving history.
A good way to get all relevant items out on the table is to provide as many details as you can think of that relate to your car. By providing information about your residence, marital status, annual commuting miles, and other aspects, you will not only give the insurers essential information, but you will also create the general outline of a budget map in your own mind.
Once you've found an auto insurance company that seems like a good fit, it's time to look at the details of your policy. One thing to keep in mind regarding your monthly budget is the size of your deductible. The general rule dictates that higher deductibles equal lower premiums. So if you were to raise your deductible from $300 to $500, you might end up easily saving $100 on your annual premium. Obviously, you must bear in mind the potential for getting in a costly accident before making this move. While no one can predict the future with total accuracy, if you only commute five miles to work every day, your chances of getting in an accident are substantially less than if you commute 100 miles a day, five days a week.
Another thing to consider when mapping out your monthly insurance budget is adding an anti-theft device to your car if it does not already have one. Insurers love secure vehicles, and are apt to express this love through a lower rate. Keeping these issues in mind makes budgeting your auto insurance a whole lot easier. |
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