People who are in the market for a new car tend to shop for the best prices. These car shoppers want to be sure that they can afford the monthly payment. When shopping for a new car, it’s also a good idea to consider the cost of insuring the vehicle. For some people, the cost of auto insurance is a big part of the cost of owning a car. It only makes sense to account for it.
At the least, vehicle owners need to carry a required liability policy. This is the kind of coverage that protects against property damage or injury claims from other people who are involved in an accident. Also, lenders require collision and comprehensive insurance in order to help protect their investment. Collision and comprehensive insurance protect the vehicle owner’s car.
Which Cars Are Usually Cheaper to Cover?
Insurers usually favor medium-sized vehicles. Underwriters at car insurance companies have concerns about the damage that very large vehicles might do to other cars in an accident, and that concern might increase liability premiums. Insurance company underwriters may also find that small cars tend to get driven by younger and less experienced drivers, so that might factor into a decision to charge more for an economy car than a family sedan.
How much does the car’s value matter? Surely, a luxury sports car will cost more to insure than an ordinary family sedan. Replacement and repair value factor into rates. However, those costs are not the only thing that underwriters consider. Insurers also consider the safety record, safety tests, and safety features of vehicles.
Typically, moderately priced cars with high marks for safety will cost less to insurer than cheaper cars that haven’t proven themselves so well. It’s also true that some newer and safer vehicles might cost less to cover than a used vehicle. It’s not a good idea to assume that a cheaper new or used car will always be a bargain when it’s time to buy a policy. Another strike against older cars is the rate of thefts. In some cases, car thieves are more likely to try to steal an older vehicle because it won’t have modern anti-theft protection.
How to Estimate Premiums Before a Purchase
Besides the vehicle, insurers also consider drivers when they offer car insurance quotes. A driver with a clean driving record is likely to find better deals than a driver who has had a lot of tickets or accidents. Still, car shoppers can have some control over their premiums by choosing a vehicle that is cheaper to cover. They are also more likely to enjoy the satisfaction of knowing that they are buying a safer vehicle.
Almost any insurance agent should be happy to provide some competitive car insurance quotes for car shoppers. There are also online quote systems that might be helpful. Some car shoppers may find that they can spend a little more on their car if they can make a wise decision about purchasing a vehicle that doesn’t cost as much to insure.