Consider Insurance Costs When Buying a Car

Orange car in shopping cartYears of hard work and saving have finally made it possible to buy that brand new car. But before driving off in that shiny new sedan or SUV, there is one hidden cost that people should consider: the price of auto insurance. Almost every single motorist needs to be insured to legally drive, and the price of certain types of coverage are largely based on a person’s automobile.

When a policy provider rates a motorist, it takes into account the year, make, and model of the vehicle, which heavily influences the cost of comprehensive and collision coverage, though it will still have some effect on liability and personal injury protection coverage costs. Producers are often concerned with the price of the vehicle, as well as potential repair and replacement costs. Additionally, vehicles that have demonstrated a history of accidents or thefts are also likely to attract higher policy prices.

Luckily, there are steps that motorists can take to locate the cheapest auto insurance available before investing in a new car. One of the most effective ways that drivers can save money is to shop around and make quote comparisons before investing in a new automobile.

Shop for Cars That Attract Lower Insurance Rates

To avoid expensive auto insurance as the result of buying a new car, consumers can research several automobiles before making a purchase.They can look at quote comparisons and take advantage of online consumer reports to find out more about prospective automobiles. For example, the Tucson Arizona Police Department is just one of many state departments that regularly publish information on the most stolen automobiles in the area. Vehicles that commonly top these lists, such as Honda Accords, are likely to have higher comprehensive coverage costs because of their popularity among auto thieves, since comprehensive pays the policyholder when a car’s stolen.

Comprehensive and it’s counterpart, collision, are two coverage types that buyers of new cars are often required to buy as the condition of an auto loan. This added protection is helpful, but the cost is largely dependent on the type of car, and it can significantly increase the price of a plan. Motorists can often cut costs by assuming more risk and choosing a higher deductible. According to the Insurance Information Institute, raising a deductible from $200 up to $500 could reduce the cost of these coverages by 15 to 30 percent.

To lower insurance prices, motorists are encouraged to consider automobiles that aren’t featured on any top ten stolen vehicle lists and that are equipped with advanced safety features. Often, buying a car with automatic seatbelts, antilock brakes, active security systems, and good crash test ratings are likely to attract special discounts and cheaper coverage overall.


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