With the current economic crisis, people are turning to any avenue possible to save money. One of the most expensive costs of living is rent and the cost of running a car. As people find themselves in more difficult financial situations, they find that large luxury vehicles and large fancy apartments are no longer viable.

One angle of looking at it is that a larger, more luxurious, higher-range vehicle will carry a larger auto insurance tag with it. These vehicles are typically more expensive to insure, as they have a higher replacement cost. If the value of the car is very high, the insurance company will have to pay a larger sum of money if the car is stolen. The repair costs of these vehicles are also usually high.

Selling your old SUV or sports car may seem like a drastic measure, but it can actually be a very wise financial decision. First, if you downsize your vehicle and buy a new one for less than it sold for, you’ll have extra money in your back pocket. In these tough financial times, it will always come in handy, and can even be put away as savings in case you need to pay an excess for future accidents. Most cars that are larger in size or classified as luxury vehicles will also consume much more fuel. If you downgrade to a smaller, more fuel efficient one, you’ll find yourself saving a lot of money on that too!

There are plenty of lovely smaller and more affordable vehicles available on the market, and you don’t have to feel like you’ve lost your ‘status symbol’. It has become very fashionable to drive cars that save fuel and are friendly to the environment. With proper research, you should find a cheaper car that is perfect for you! As an added breather from car insurance, you can find out about prices for a certified safety vehicle. Cars that have been tested and approved as safer to drive may receive discounts from insurance companies. These are vehicles that have passed crash tests and the like, and that insurance companies know will end up costing much less to repair if damaged.

If you’re buying a new vehicle, it might also be a good time to review your auto insurance company. You may find a better deal on your new vehicle with another company. The best thing to do is to compile as many auto insurance quotes as possible, so you can make an informed decision. There are some lovely websites that offer comparative insurance quotes simply by filling out an individual form. A pay-as-you-go option may also work well for you, if you don’t travel too many miles in a month. That way, you’ll also get a tracker installed in your new vehicle for added security. Make sure the new vehicle you buy has readily available parts and service centers in the area where you live to avoid expensive shipping costs and repair costs in case something happens.