Buying a new or used car comes with more responsibility than just a monthly car loan payment. Your insurance premium is heavily based on the make, model and year of the car you drive, along with other factors including your age, gender and driving record. You don’t want to choose a car that has a modest monthly payment just to realize the insurance is much higher than you expected.
The good news? Independent agents are available to give you a free quote to assist your car shopping. As you narrow down the list of cars you’re seriously considering, it’s a good idea to contact your local agent to get a general idea of how much the auto insurance would be for each car on your short list. There may be dramatic differences in price, particularly if you’re shopping in a used car lot with vehicles of all different makes, years and conditions.
How does your car affect your insurance rate? There are many factors that determine your premium, but the main ones are safety, age and cost. Safe cars are generally cheaper to insure because they protect against theft and physical harm in the event of an accident, which helps reduce the amount of claims on such cars. Newer cars tend to have more standard safety features than older used cars, which may factor into your premium. However, newer cars cost more to repair than older cars in the event of an accident, therefore costing insurers more on new cars driven by high-risk individuals. Similarly, expensive cars will cost more to repair than modest cars, which can also affect premiums.
Since these three factors overlap each other, the best thing to do is to seek advice from a professional in the insurance industry. If you have the money to shop for a flashy new sports car, the cost of your premium may not matter as much as it would to a family shopping for a modest, safe sedan for everyday use. But to this family, saving a couple hundred dollars annually on auto insurance could make a huge difference.
We’ll be your trusted partner as you shop for a new car. Contact McInnis Insurance Services, Inc. for more information on auto insurance.