car-insurance

Getting Insurance on a Brand New Car

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.

Getting Insurance on a Brand New Car

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 because 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.

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.

car-insurance

Traffic Tickets Will Cost You

Traffic Tickets Will Cost You
Car insurance is expensive enough but if you have a lead foot it can cost you even more.  Traffic tickets will cost you more than just points on your license they can also drive up the cost of your insurance.  Driving carefully not only helps to protect the public and reduce the amount of accidents on our roads and highways it is can also save you money.

Speeding Tickets

There are over 41 million speeding tickets written each and every year in the US alone with the average cost of a ticket being around $125 each.  You have a 1 in 6 chance of getting caught speeding as you travel along the highways and roadways.  When you are pulled over for speeding not only are you going to get a fine but you stand a chance of losing your license if you are a repeat offender.  Depending on where you are caught the fines can get pretty hefty.

Your Insurance Rates

When the time comes to renew your car insurance you may be in for a very unpleasant surprise.  You will discover that your insurance rates have climbed drastically.  You may think that your insurance company is being pretty punitive but that is not actually the case.  Insurance rates are based on statistics and profits and losses.  Having several speeding tickets says to the insurance company that you are far more likely to get into an accident and they are going to have to pay out a claim because of that.  That means their risk is higher so in order to continue offering you insurance they will have to charge you more.  Here is a look at how rates are calculated.

Your Driving Record

While there are other factors that affect your insurance rates like anti-theft devices, the amount of your deductible and your age, the biggest impact is going to come from your driving record.  Insurance companies view a driving record as an indicator of how likely it will be that you will get into an accident.  Having a bunch of moving violations on your record is an indicator that you’re not a very responsible driver.

DUI

If you have a record or are charged with a DUI then your insurance rates are going to skyrocket.  In fact you may see your policy cancelled altogether.  Driving under the influence is just about the worst case scenario when it comes to your insurance rates.

Car insurance is necessary is most cases, it protects you, your car and other drivers on the road.  That doesn’t mean that you have to drive up the costs by driving irresponsible.  Safe driving saves lives and saves you money.