While we all try to get the best price when buying a new car, people often forget to factor in the cost of auto insurance. And depending on the type of car you choose, it could be a make-orbreak consideration. Though many factors go into determining a person’s annual car insurance premium, the car itself certainly plays a role.
When people go out for car shopping expedition, most never stop to think how the car they buy could potentially change their insurance rates. They just assume that it will go up first and foremost because it’s a new car.
Personally, if I was to get a new car, I’d try and get a safe, reliable vehicle I could afford, and ultimately, my rate didn’t go up enough to make a huge dent in my overall budget.
But that’s just me. If you have your heart set on a specific car or have the means and desire for a luxury vehicle, you should definitely consider how your insurance rate will affect the overall cost of owning your car.
For example, insuring a sensible 2013 Toyota Sienna costs about half of what it costs to insure that white 2013 Range Rover Sport you’ve been eyeing.
So next time you’re shopping for a new ride, use these 5 tips for picking an insurance-friendly car.
Before you buy your new car, go online to get a quote for that year, make, and model. The results may be enlightening. Though there are moves you can make to minimize your costs, such as increasing your deductibles or dropping comprehensive or collision coverage, it’s important not to sacrifice solid protection for a shiny new car.
Avoid high-performance vehicles
Sports cars, large SUVs, luxury cars, and anything, well, souped-up all come with boosted insurance premiums because they generally cost more to repair or replace. Safety is also a factor — a small, zippy sports car generally offers fewer safety features and attracts more lead-footed drivers than a modest midsized sedan. Plus, these cars are typically gas guzzlers, which will also add to your expenses.
So unless you’re prepared to shoulder the many surrounding costs for your dream car, your best bet is to simply stay away from these high-end rides. Sensible choices reap their own rewards.
Research average repair costs
Cars that are more expensive to insure are generally more expensive to fix and sometimes require hard-to-find parts. Research the typical repair and maintenance costs for vehicles in your area. You can also research which cars cost the least (and most) to repair, which are worthy considerations (and ones that your insurance company will also take into account)
Know the stolen vehicle statistics
As you might imagine, cars that are more likely to be stolen are more expensive to insure. Find out which cars in your area are more likely to be stolen before buying a car.
Go with a less expensive model
Add-ons that come standard on high-end models, such as sunroofs and built-in navigation systems, are nice to have but expensive to repair. Yes, this too means higher insurance premiums. You’ll be spending enough on your new car as it is, so if you’re willing to forego some of these luxuries, you can save on the sale price and on your insurance premiums.
Before you decide on your next car, do your homework to investigate how it will affect your car insurance premium. A little reality check can have a big impact on what you have to lay out each month. Do you have an insurance-friendly car? Tell us about it.