Downsizing Your Car to Save on Insurance

Downsizing Your Car to Save on Insurance

With the current economic crisis, people are turning to whatever avenues possible to save money. One of the more expensive costs of living are rentals and the cost of running a car. As people find themselves in stickier financial situations, they find that the large luxury vehicles and big fancy apartments are just not viable anymore.

An angle of looking at it is that a larger, more luxurious and higher rank vehicle will carry a larger car insurance tag with it. These vehicles are usually more expensive to insure as they come with a higher replacement cost. If the value of the car is very high, the insurance company will have to pay out a larger sum of money should the car be stolen. The costs of repairs to these vehicles are also usually high.

Selling your old SUV or sports car can seem like a drastic measure, but it can actually be a very wise financial decision. Firstly, if you downsize your vehicle and purchase a new one for less of the cost than the one that was sold, you will have extra cash in your back pocket. In these hard financial times it will always come in handy, and can even be put away as a saving in case you will need to pay out excess for any future accidents. Most of the cars which are larger in size, or that are classified as luxury vehicles will be a lot heavier on fuel too. If you downgrade to a smaller, more fuel efficient car you will find yourself saving a lot of money on that too!

There are many lovely smaller, more affordable vehicles available on the market, and you need not feel like you have lost your “status symbol.” It has become very trendy to drive fuel efficient and environment friendly cars. With some proper research you should find a cheaper car that is perfect for you! As an added auto insurance reprieve, you could find out the prices of a certified safety vehicle. Cars which have been tested and approved as being safer to drive can receive discounts from insurance companies. These are vehicles which have endured crash tests and the like, and which the insurance companies know will land up costing a lot less in repairs should they get damaged.

If you purchase a new vehicle, it could also be a good time to review your car insurance company. You may find a better deal for your new vehicle with another company. The best thing to do is to compile as many car insurance quotes as possible, so that you can make an informed choice. There are some lovely websites which offer comparative insurance quotes by simply filling in an individual form. You may find that a pay as you drive option could work well for you too, if you do not travel too many kilometers in a month. That way you will get a tracker installed in your new vehicle for added security too. Ensure that the new vehicle you buy has readily available parts and service centers in the area that you live in to avoid expensive shipment costs and repair costs should anything happen.