With new and used car prices at historically high levels, many families find they must scrutinize their budgets carefully to determine how the new expenditure will affect their finances. Since auto insurance premiums can also be a significant expense in most households, finding ways to minimize the cost of coverage for the new vehicle can be an important way for families to reduce the pain of purchasing another vehicle. 

Determine whether to buy new or used

In most instances, a used vehicle will be less costly to insure than a new one. Families who are searching for a specific vehicle will likely find that searching the used car market for the model they want, instead of opting to purchase new, will result in lower insurance premiums while still being able to enjoy the experience of owning a driving the car of their dreams. 

Seek a vehicle with low-risk factors

Another important way to reduce insurance premiums when purchasing a car is to choose one with low-risk factors. Auto insurance providers must charge higher premiums for vehicle models that carry high-risk factors, such as: 

• vehicles that are most often targeted for theft and vandalism 
• vehicles with performance features that heighten the risk of being involved in an accident 
• vehicles that have design elements or equipment that is very costly to repair or replace

Car shoppers who take time to determine which vehicles are most likely to have the highest insurance premiums will be able to more easily select a model that their insurance company will consider to be less risky, and expensive, to insure. 

Take steps to improve credit or driving record

Car insurance providers use information from an owner's credit history and driving record to help them determine the cost of insuring a vehicle. Purchasers with credit or driving history issues may find that postponing a vehicle purchase to allow time to address these issues can result in lower auto insurance premiums when they are ready to move forward with the purchase. 

Ask about premium discounts 

In addition to the tips discussed above, families who want to purchase a vehicle will also want to schedule a time to discuss their situation with a reputable car insurance provider in their area. Many insurers are able to craft vehicle insurance terms to help their customers save money on the costs of insuring a new or used vehicle, including offering a discount for bundling multiple policies or offering lower premium prices on higher deductible amounts. 

For more information, contact a car insurance company in your area.