When shopping for your next car, you need to consider the cost of insurance. It is not something many people give consideration to, but without putting any thought into it, you can be saddled with large bills over the time you own the car. The following are three things that will influence the cost of your insurance premiums that relate to to type of car you purchase.
Paying cash or financing a car
When you pay cash, you have more options concerning how much insurance you want. Paying cash means that you own your car, and can buy as much or as little insurance as you choose. Of course, each state has minimum requirements for insurance, but these minimums are much less than a lender will require if you choose to finance your purchase. When financing a car, your lender will want to protect the car's value as it is collateral for the loan.
If you pay cash for a new car, you are likely to still want have full coverage, but for the purchase of a used car, the savings in reduced premiums for collision alone can be significant over the course of the period of vehicle ownership.
Cost of parts
Most people look at the sticker price of a car and think that the higher the price the more expensive the car is to repair. But this is this is a general rule of thumb, and you must be careful. There are some low priced cars that are designed to be as cheap as possible in the new car market. But in order to achieve this, there are parts used in the design that are not cheap to replace because they are not standard parts used on other cars.
Small problems that happen because of a minor accident can become more expensive to repair than anticipated. If you have a high deductible, this type of repair may come out of your own pocket.
The safety record of the car
Many cars on the market that are seem similar to others may have lower insurance rates because the data of their safety are quite different. Certain cars can have better safety records because they protect their drivers and passengers better when there is an accident. There is some consumer research that can be done in this area, but the best way to compare car safety as it relates to insurance is simply with insurance quotes from the same company.
One of the largest yet valuable expenses for operating a car is auto insurance. So before you decide on the make and model of the car you want and whether to buy new or used, make sure you take time to consider the insurance cost of car over the estimated time you plan on owning the car.
Share28 February 2017
About ten years ago, my auto insurance was cancelled. This took place after one too many accidents. I was now a high risk, and my provider was not willing to keep me on any longer. Since there was no way that I was going to get behind the wheel without coverage, I started checking out plans with high-risk insurers. Some were not all that great, but others offered benefits that were very close to my old plan. I soon found a provider who would accept my application, and I began to be a little more careful with my driving. If you are having trouble buying auto insurance, let me help. I'll tell you what to look for in a high-risk provider, and how to find the best one in your area. In no time at all, you'll be covered and ready to get back on the road again.