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The Importance Of New Car Insurance
Your new car insurance is a significant financial decision, and like all financial decisions it deserves proper consideration to ensure that you end up with the right new car insurance for your needs. If you are offered new car insurance as a package deal with the car, politely ask for a discount off the selling price instead. You don’t want to be stuck with dud new car insurance that doesn’t meet your needs.

New vehicle insurance is costly. Don’t make the mistake of spending your entire budget on the car itself, and leaving yourself short of the required funds to pay for your new car insurance. Give yourself plenty of time to consider which new car insurance is right for you, and then set aside the funds to cover the cost of the premium, before you buy your new vehicle.

Factors Affecting Your New Car Insurance
The cost of your new car insurance may vary quite a bit. Different insurers will give different weighting to some of the factors, which means that shopping around can be a very good idea indeed.

Your new car insurance premium will vary based on factors such as where your new car will be garaged, whether your new vehicle has ABS brakes or other safety features, and the ages of the people who will be driving your new auto.

The deductible - the amount you pay in case of an accident - can sometimes be varied to your discretion. If you choose to take a higher deductible in the case of an accident, you will then pay a lower monthly or annual premium for your new car insurance.

Some makes and models are more likely to be stolen or damaged, which means that the insurance cost for these cars will be higher.

Your previous driving record, and sometimes even your credit score can be taken into consideration.

How To Get New Car Insurance
Because of the requirements for new car insurance, you are unlikely to be able to prepay the premium before you own the car. Instead, you will need to arrange a temporary new car insurance, called a “cover note”, which you can usually do over the phone. Once the cover note has been issued, you will have a few days to get the proper paperwork completed for your new car insurance.

The company which issues the cover note should not require you to take out one of their policies as a condition of issuing the cover note. They may well send you paperwork to take our their new car insurance, but you should not be obligated to go with that particular company if you can find a better deal elsewhere. Make sure you ask that question when you are ordering your cover note over the phone.

The issuer of your cover note will require much of the same information that your insurer will require - your personal details, the make and model of the car, its value, and any other information affecting their possible liability. The issuer of your cover note will not require as much detail, or as much documentary evidence, as your final insurer.

This article is an extract from Mark Bennett’s comprehensive guide on obtaining new car insurance, which is available from AllFinanceAdvice.com.

Mark Bennett is a staff writer for AllFinanceAdvice.com, and comments regularly to other authoritative financial websites and publications.