Thinking about buying a new car is always exciting, and most people consider their options. Gas mileage, sun roof, sports package, monthly payments, all the usual things. But when the papers are signed and you are committed to that monthly payment, often people have the sticker shock of their monthly auto insurance premium to consider. Especially if you went from liability only on a paid-off vehicle to needing full coverage for the vehicle they will be paying off for the next 5 years.
Style Can Increase Premiums
While it’s nice that you can afford the payment on that sports car or SUV, the fact is that your insurance provider may charge more to protect you while driving it. Part of that “full coverage” you are required to have while making payments includes the cost of vehicle replacement. The more your vehicle costs to replace, the more your premium is likely to increase. Whether you drive in economy mode or not, just having a “sports package” on a vehicle may cause an insurance increase. Consider whether those additional features really matter, and make sure that the increased premiums are worth the increased performance.
Safety Features Save Money
Not only do safety features save lives, but they may save you money on your monthly premium as well. The more frequently injury and collision claims are brought for specific model cars, trucks and SUVs, the higher the insurance premiums tend to be. One way of checking is to review industry-wide information through the Highway Loss Data Institute (HLDI), another is to check with your specific insurance provider. The HLDI is a basis of insurance premiums, but individual insurance agencies may choose to adjust their premiums based on their own experiences with claims.
It is typical that lower injury claims come from large vehicles, but SUVs tend to have higher insurance rates than full or mid-sized cars, but some are relatively cheap to insure. The best way to understand how much your insurance premium will change depending on the vehicle you want to purchase is to contact your agent directly. Contact them before you start to shop and tell them that you will be looking to buy, ask them if there are any vehicles they suggest staying away from, or suggest to buy. Their knowledge of safe, low-theft, and low repair cost vehicles will help to shed some light on long term auto insurance costs.
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