Your New Car and Your Insurance: What to Know Before You Buy

April 1, 2013

car dealerWith spring on the way the idea of buying a new car becomes more appealing to many people. As the weather improves being out on the road is more pleasant, and that sends many people on the hunt for a new car. If you are looking to pick up some new wheels this spring, make sure that insurance is one of the many things you consider as you shop.

How the Car Affects the Rates

Most people don’t realize just how vastly different one car can be from another when it comes to insurance, and that can really cost when the bill comes in. There are a lot of things to consider when it comes to budgeting for and shopping for your new car, and insurance quotes should be one of them.

As a general rule, the more expensive the car the more you can expect to pay for coverage; after all, the insurance company is providing you with protection for a more valuable vehicle. But there is more to the rating system than just the dollar value. Some cars are more expensive to repair due to accessibility of parts, while some cars may simply be a higher risk for the insurance company to take on.

Factors that Affect Premiums

Aside from the actual value of the vehicle, there are a few other factors about the car you’re considering buying that can make a big difference when it comes to insurance.

Some types of vehicles are more expensive to insure in general. Among them are SUVs and sports cars. Insurance companies use a wide variety of statistics and information to determine their rates, and the statistics bear out the fact that claims tend to be more expensive and in some cases more frequent on these types of vehicles.

Cars that are more commonly stolen may also cost more money to insure than others that are less often targeted by thieves. If a car is more likely to be stolen, then that increases the risk to the insurance company of having to pay out on a comprehensive claim for that vehicle.

Who is Driving the Car

When you are shopping around for a new car it’s important to take into consideration who will be the main driver of that car. Cars that will be driven by a younger and less experienced driver many be more expensive to insure; thus it makes sense to look for a car that has lower rates to begin with when shopping for such a driver. A teenage driver and an expensive, powerful sports car are a bad combination when it comes to insurance rates, so no matter how much your teen might want that car, it could cost you more than you want to pay for insurance.

You should also be sure to consider commuting distance and frequency of the use for the car. These things can affect the rate as well.

Get Quotes Before You Buy

The best way to avoid an expensive insurance bill that you weren’t prepared for is to get car insurance quotes before you buy a new car. When you are comparing models, request quotes on all of the ones on your list before you make a final decision. This will allow you to make an informed decision on your purchase that includes not just all the important things about the car itself, but how much you can expect to pay for insurance on that car.

Be sure to give the insurance company accurate information about who will be driving the car and how it will be used when you get a quote; if you later change the driver or commuting status you will likely see an increase in the rate over what was quoted. Accurate information allows the insurance company to give you a proper quote and allows you to make the most informed decision on your insurance rates.

Buying a new car is a good opportunity to shop your insurance around as well. Since you are already looking for quotes, take the extra time to get quotes from a few sources or one online source. You should also ask them to quote any other vehicles you own to be sure you get multi-policy discounts and to find out if you could be saving across the board.

Before you buy a new car this spring, be sure to find out all of the details about insuring that car. You’ll avoid a bill you didn’t expect and make the best decision possible when it comes to your car purchase.