Getting a new car or just new to you means you have to get some car insurance. You will find that insurance premiums on a new car can vary a great deal. If you bought a high end sports car then you can expect to pay, but a slightly older Ford Escort won’t cost anywhere near as much. Getting insurance on a new car isn’t something that you can avoid. Before you pay you should also factor in the cost of insurance as part of your monthly expenses.
New or Used Cars
Brand new cars from this current year are going to cost the most to insure. You will probably need comprehensive coverage if you are financing your purchase. The reason that the premiums are so high is that newer cars cost more to replace. Should your car get stolen or written off in an accident then it will cost tens of thousands to replace. Repair costs are also higher on new cars, even if the car isn’t written off in an accident but it needs to be repaired that can still run to thousands of dollars. Another thing to consider is getting separate insurance for any commercial vehicles. Some insurance companies specialize in Service type businesses like Tree Service and Landscaping businesses. Often times these insurance companies can get you a better deal for your Service type business over other insurance companies.
The Model of Car
The make and model of your car also makes a difference. Insurance companies charge higher premiums for sports cars than they would for a Subaru hatchback. Insurance rates are based on statistical data including the most common model of car that is stolen. The other reason that sports cars cost more to insure is that drivers are far more likely to drive at higher speeds. Let’s face it, you don’t drive a Viper the same way you drive a Camry.
SUVs Cost More
You may think that with four wheel drive and all of the safety features that an SUV would be cheaper to insure. However that’s not the case, despite being mostly a family vehicle they are also stolen quite frequently and they are used off-road. Driving off-road is riskier both to your vehicle and yourself. Anything that causes any kind of risk is a red flag to an insurance company and the price of insurance goes up.
If you are buying a new car, you can always check with your insurance company first to get an idea of what your premiums are going to be. Remember that having a good driving record will help you to get better rates too. Remember you need to be able to afford both the car payments and the insurance payments.