Cheap Car Insurance for Young People: Tips to Save Costs While Ensuring Safety

Currently, car insurance is mandatory when purchasing a car. However, choosing the right type of car insurance that suits your budget can be quite challenging, given the varying premiums among insurance companies. To help you save money while obtaining comprehensive car insurance, we have some tips for you:

1. Essential Tips for Buying Car Insurance

While having more insurance coverage ensures greater safety on the road, choosing the right type of car insurance depends on various financial capabilities and factors.

In reality, not all car owners are willing to spend extra on insurance due to several reasons. Some may feel it’s unnecessary, believing their vehicle is safe enough, while others perceive it as an added expense after already investing significantly in purchasing the car, paying taxes, maintenance costs, fuel, etc. For many, adding car insurance might raise concerns.

So, how can you purchase car insurance in the most cost-effective and efficient way while minimizing expenses? It’s not an easy question, but it’s not necessarily difficult.

1.1. For New or High-Value Cars, Consider Comprehensive Theft Insurance

Thieves typically target new or high-value vehicles. Therefore, if you own a new or expensive car, it’s more susceptible to theft, particularly side mirror theft. In such cases, it’s advisable to purchase comprehensive car insurance (including mandatory third-party liability insurance and comprehensive vehicle insurance).

However, for older or less valuable cars, such comprehensive coverage might not be necessary, though it could still be considered if deemed essential.

1.2. Buy Insurance Based on Usage and Purpose

Another influencing factor in deciding on car insurance is the frequency and purpose of car usage. If your vehicle is frequently used for taxi services like Uber or Grab, there’s a higher risk of accidents or theft. In such cases, purchasing comprehensive vehicle body insurance is nearly mandatory. Conversely, if your car is primarily for family or less frequent personal use, comprehensive body insurance might not be essential.

1.3. Consider Purchasing a High Deductible Insurance Plan

Explained earlier, a plan with a high deductible:

If the loss is below the deductible amount, the car owner bears the cost.
If the loss surpasses the deductible amount, the insurance payment equals the loss value minus the deductible.

One buying tip here is to opt for insurance plans with a higher deductible. As the deductible increases, the insurance premium decreases. Benefits include:

Reduced insurance expenses
Use savings to cover minor damages (below the deductible). This allows choosing a preferred garage without insurance involvement, saving time and hassle.

1.4. Research Repair Shop Partners of the Insurance Company

A crucial aspect, often overlooked, is to ascertain the repair shops linked with your chosen insurance package. In case of accidents, these shops will handle your car repairs or replacements.

Therefore, it’s essential to verify if these partnered repair shops are convenient to your location and offer seamless service. Additionally, researching their credibility and 24/7 support during emergencies is advisable.

2. Ways to Purchase the Most Economical Comprehensive Car Insurance

2.1. Explore Multiple Insurance Companies before Choosing

To obtain the best premium for the same insurance content, it’s recommended to request quotes from at least two different insurance companies. However, don’t solely focus on premiums; be attentive to the claims settlement procedures, financial stability, and reputation of the insurance companies. Seeking recommendations from friends or relatives who have used comprehensive car insurance can be helpful.

2.2. Pay Attention to Service Quality

Thoroughly research special services, specifically preferring insurance companies with reputable and convenient repair garages. Check the collaboration between the insurance company and these garages to avoid multiple trips. Also, consider 24/7 roadside assistance, professional claim settlement staff, and their procedures.

2.3. Choose a High Deductible Amount

The deductible, or minimum threshold, is the amount below which an insurance claim won’t apply. You can save 20-30% on insurance costs. However, opting for this requires cautious driving as most minor scratches won’t be covered.

2.4. Combine Insurance Policies

Purchasing health and comprehensive car insurance from the same reputable insurance company often results in discounts. Alternatively, consider long-term insurance plans if feasible.