Why worry about which autos are cheaper to insure?
You have spent hours haggling with a car salesman trying to find a car and a loan with a monthly premium you can afford. However, you did not take the monthly insurance premium into account, and so when you finally have the car, you find that your expenses are more than you calculated. You may wish you had chosen a different car that was cheaper to insure. Has this been your experience? It has certainly been mine! Now when I hit the lots, I make sure that I have a good idea of all the costs that will be affected my by purchase of a shiny new vehicle!
How do insurance companies decide which vehicles have lower premium rates?
Insurance companies already know that higher horsepower, sports cars tend to generate more claim dollars for them than economy cars do. They have statistics, and they will go by that history when they set rates. Drivers just tend to want to use the power of their sporty machines, and that is a good recipe for higher amounts of auto accidents with higher bills from damage.
Some autos are just more expensive to repair. Perhaps they have special parts that must be ordered from overseas, or they are just not common makes that Joe at the local repair shop stocks. Average repair costs is another calculation that goes into the statistics. You may also want to consider the expense of making repairs for your own future convenience and budget.
Some cars may not be involved in a lot of accidents, and they may be less expensive to repair, but they tend to do a lot of damage to other cars when they are in an accident. This can also be a factor in the price calculation. Obviously the amount of liability that a company takes on will affect the price they want to charge to cover it!
And finally, you may be looking at a very attractive new car that is also attractive to those who make a living stealing them. Insurance companies also cover theft, and they will charge you more if they think your purchase is a theft target.
What else do you need to consider when you are trying to figure out which cars cost less to insure?
Of course, other factors will go into your bill. Your own driving history, where you live, and your age go into your final rate calculation. But you are probably already familiar with this, and so the type of shiny new wheels you drive off the lot will make the big difference when you have to call your car insurance agent and tell him you have just arrived home with a great deal. Hopefully the good price you got at the lot will still look good after you see your new car insurance bill!
With so many things to consider, it can be hard to figure out how much your premium will cost. You can find a simple quote form that can help you compare quotes on the internet. That way you will have a good idea about this part of your auto buying budget!
Would you like to know which cars cost less to cover?
