New Car Insurance Costs

More to the sticker price than meets the eye!

Buying a new car can be a very exciting and overwhelming experience. Sorting through options, makes, models and features is enough to make your head spin. Not to mention the financing and car insurance costs. However, being prepared before you shop can help make the buying process quicker and easier for you!

Identifying the ideal car for you.

Before heading out to the car dealership, make a list of what you are looking for in a new car. As you are writing the list, think about the same concerns a car insurance company would consider when quoting you a rate, such as:

  • How do you use your car?
  • How many passengers do you typically carry?
  • How often do you drive your car?
  • Where do you drive?

These factors will help you pinpoint the best car for you, while also helping to potentially keep your car insurance premium down.

Features to consider before you buy.

Make a list of all the features and options that are important to you, such as head and leg room, transmission type, engine, trunk size, airbags, security system, anti-lock brakes and other safety features. Car insurance companies often give discounts for some of these items; saving you significant money on your overall quote.

Also, check out auto manufacture’s websites. Many have special pages that let you “shop” for your dream car – giving you the opportunity to select the features that are important to you, while also providing you with the true cost of these “extra perks.”

The cost.

Before you buy you should always factor in all costs involved with buying a new car, including sticker price, gas, maintenance, financing rates, taxes and car insurance.

How much you pay for your car has a powerful effect on your car insurance premium. A luxury car with all the latest safety features will typically cost more to insure than a no-frill economy car, due in part, because the higher-priced car may be more expensive to repair or is more likely to be stolen.

Yet some cars do consistently get better deals on car insurance rates than others. For example, a $14,000 Dodge Neon costs about the same amount to insure as a $34,000 Volvo XC70. According to Edmunds.com, the Dodge Neon would set you back an average of $4,410 in premiums over five years, while the Volvo would cost $4,605.

Why, you may ask?

The Volvo tends to receive a bigger insurance discount because it inflicts less damage to other cars in an accident, suffers less damage, has a lower theft rate and protects its passengers better in an accident.

According to one national insurance provider, the Dodge Neon does worse than the average car in all three categories, equaling the reason why it costs so much to insure.

Do your research!

Not only do you need to look at what your new car has to offer, you also need to do some background research as well.

Car insurance premiums are based partly on the price of the vehicle, which affects the replacement cost if it is stolen or “totaled” in an accident. How expensive the vehicle is to repair – including parts and labor – can also impact your insurance rate. In addition, surcharges may apply to vehicles that are frequently stolen or involved in accidents.

To find out if that next dream car might be more than you bargained for, visit Highway Loss Data Institute’s website. Here you will find industry-wide information on injury claims, collision repair costs and theft rates by vehicle model.

Car Insurance Rates

Many car owners avoid taking more auto insurance than the minimum level required by the state simply because of the exorbitant car insurance rates that they have to pay. Car insurance rates are made up of a base rate, after which an addition or reduction takes place, determined by a variety of reasons including those that are beyond the owners’ control.

Generally, an auto insurance company looks at the following aspects to decide on a suitable car insurance rate for each car owner:

Age: According to the US Department of Transportation, the probability of young drivers being involved in car accidents is four times higher than that of the elderly. Insurance companies take the view that young driver are more likely to speed, drink and drive, and not wear their seat belts. Families who have young drivers usually pay higher car insurance rates due to this additional risk.
Marital status: Insurance companies perceive marriage as a reliable sign of maturity and responsibility, causing car insurance rates to be lower.

Gender: This is another uncontrollable factor affecting car insurance rates. Although bordering on sex discrimination, state laws allow insurance companies to raise car insurance rates for men drivers. Based on car accident statistics, young men below the age of 30 are involved in a great number of accidents compared to women in the same age group.

Location / Neighborhood: The area in which owners live plays an important role. Places with higher probability of car thefts incur higher car insurance rates. Likewise for certain states which have high density traffic, such as New Jersey and New York.

The Car: The more expensive the car is, the more its owner will have to fork out in both collision and comprehensive insurance costs. Collision coverage pays for repair costs, and cars with expensive spare parts increase cost. In addition, more expensive cars are more likely to be stolen.

Amount of Driving: Driving more miles than the annual average increases the car’s exposure to damaging elements and risks of accidents or theft. As exposure increases, so does risk, leading to higher car insurance rates.

Driving and Claims History: Car insurance rates increase with the number of accidents and serious traffic violations a car owner has been involved in before. Besides this, an owner who regularly makes claims to insurance companies tends to have greater car insurance rates.

Credit History: Credit scores measure the types of credits taken, outstanding debt and reliability of past payments, among other things. If owners display stable credit scores over a long term and are able to keep their outstanding credit balances low, car insurance rates can be reduced as well.

It is important for car owners to shop around for the best car insurance rates with all the above factors in mind. Although owners cannot help the uncontrollable demographic factors like age and gender, they can still reduce car insurance rates by working on the controllable aspects like the type of car driven and credit history.

Reasons To Change Your Car Insurance Company

1. Paying too much for Car Insurance, its time to seek change.

2. When you must think of a new car insurance company.

Auto insurance is not a luxury but a necessity. And in order to get the maximum advantage experts recommend that you should shop around for auto insurance every 2-3 years. As policies change and newer players enter the market there are so many new attractive auto insurance schemes that you could benefit from. You should consider changing your auto insurance when:

o You are availing a huge mortgage to buy property and the bank or institution offers you a lower interest rate on home and auto insurance through their tie -ups.

o You have moved to another state where the auto insurance rules are different and you will make a saving by transferring your insurance to a new car insurance company. Or when your old car insurance company does not offer service in your new state.

o You want to cut costs and are trying to run your life on a budget. Shop around online for competitive auto insurance rates and change the car insurance company to one who offers the best deal.

o You have purchased a new car and the dealer is offering free insurance for three years. New cars have lower insurance rates so it is best for you to do a comparative study and find a car insurance company that offers a great deal. Car insurance rates vary greatly between car brands and types; find out which car insurance company offers the maximum coverage for the lowest rate.

o You are getting married and now will have two cars. Think about cancelling your individual car insurance policies and getting a joint one for both cars. Similarly if your family is growing and you have many cars used by adults as well as kids, ask auto insurance companies about group insurance schemes that will cover all the cars and drivers in your home. Most companies offer great discounted rates for combining car insurance policies.

o You are retired and now a senior citizen. Car insurance companies offer discounts to those who are 55 and above. There are a great many discounts available for a car that has a good insurance claim record, a car that is not driven every day, and a car that is single driver driven and well maintained.

o You are eligible for coverage through your new job. Many large companies have facilities like auto insurance schemes at premium rates lower than the market. If you are working in such a firm then you must consider cancelling your old policy and taking a new one with the car insurance company chosen by your workplace.

o When the rates being paid by you are high and your car insurance company shows no inclination to offer you a competitive rate. If you are paying too much for car insurance its time you changed your car insurance company to one that is offering you great facilities and rates.

Whatever the reason to change your car insurance company, the World Wide Web has sites where you can compare offers as well as quotes. Sites like LowerMyBills.com give quote comparisons in a click. So, read all you can about car insurance and the companies and determine which car insurance company offer will suit you best.

The Importance Of Car Insurance

Miniature car on stack of money

If you have a car, then you would need car insurance. The best car insurance can protect your car from any inconvenience should a likely car accident occur. But you should also be careful of what kind of car insurance you have. There are a lot of them available out there but not all can give you that coverage that you might be looking for.

As most other types of insurance available to choose from, the same thing goes with insuring your own car. There are different types that you can choose from, depending on what your needs are. There are liability car insurance policies that cover for accidental bodily injury as well as property damage to others. There are also policies that cover only damages caused by collisions with other vehicles or objects. There are also comprehensive car insurance policies that cover for loss or damage to the insured vehicle caused by circumstances other than car accidents. This may include car damage or loss due to fire, hail, vandalism, or theft.

Another type of car insurance policy available for you covers for medical expenses for injuries caused by a car accident regardless of fault. There is also a type of car insurance policy called Personal Injury Protection (PIP) that covers an insured driver for injuries acquired from a car accident, regardless of fault. There are also car insurance policies that can cover a motorist from car damages in a car accident with a driver who doesn’t have liability insurance.

There is also a type of policy for covering car damages caused by a car accident caused by the other driver who has insufficient liability insurance. Fro rental cars, there is also a type of car insurance that will pay for damages caused by an accident on the road. These types of car insurance can also be found in combination to give you a variety of policies to choose from. Knowing what your exact needs are and being aware of the minimum car insurance requirement in the place where you live in can help you in being able to choose the best car insurance policy to cover your own vehicle.

There are useful tips available to help you look for a good car insurance policy that can help you keep your premium payments down to a minimum. In looking for good car insurance, you should also try looking for car insurance available for you online. You might be able to avail of discounts for car insurance policies purchased online. You can also try to limit your car’s mileage before you try to get an insurance quote for it. The lower the mileage, the lower the insurance quote. Try not to modify or customize your car as it might affect your car insurance coverage.

You can also try to restrict the number of drivers on your car insurance policy as it might increase your premium payments later on. If you want to avail of good but affordable car insurance, then you can choose to drive a cheap but dependable vehicle because such cars can have policies that can well cover for damages at a very affordable premium. These are just but a few tips for you in getting that car insurance the cheaper way. A car insurance policy can greatly benefit a regular driver like you. It is never to early too get one for your car. You may never be able to handle the regret if you realize its need a little too late.

Tips for Saving Money on Car Insurance

postCar insurance is required by all licensed drivers but many of them don’t know how to find the best rates available. Being complacent and purchasing car insurance without carefully investigating your options or maintaining the same car insurance for the remainder of your life could mean that you are paying too much for your car insurance. Comparison shopping, ensuring that you are receiving all the discounts you qualify for and maintaining a clean driving record are just a few of the money saving tips that can save you a fortune on car insurance.

Comparison shopping for car insurance, even after you are already insured, cannot be underestimated. It is critical that you investigate all of your options before choosing an insurance provider to ensure that you are getting the best possible rate on your car insurance. There are so many factors considered in car insurance policies such as where you live, your driving record, your age and the type of car you drive just to name a few. With all of these factors to consider, it is very possible that you will find that there is a car insurance provider who will offer you a considerably lower rate than other providers.

Even after you have secured insurance for your car, it is wise to periodically check the rates that other providers will offer you. Car insurance as well as your circumstances are perpetually changing and you may find that the provider who is willing to offer you the best car insurance rate varies periodically. Many car insurance providers offer a host of discounts to their clients who qualify for these discounts. These discounts can relate to your driving record, safety features of your car, your age or other factors.

These discounts can result in a tremendous cost savings on your car insurance policy but while many insurance providers offer these discounts, they don’t always advertise them. This means that you may have to do research to determine what type of discounts you may qualify to receive. Carefully, review your car insurance policy to determine which discounts you are already receiving and then contact your car insurance provider to inquire about other discounts that may be available. For example if your driving record is devoid of accidents or tickets, you may qualify for a good driver discount.

Also, if your car has certain safety features such as daytime running lights, you may also qualify for car insurance discounts. Your age can also qualify you for certain car insurance discounts. Some insurance providers also offer discounts to those who insure their house with the same company as they insure their car. Taking advantage of this type of discount can save you money on both your car and home insurance. Being aware of the discounts that are available and ensuring that you are receiving these discounts, can save you a great deal of money on your car insurance.

Finally, maintaining a clean driving record is very important to receiving the best available car insurance rate. While it is true that each car insurance provider is unique in the factors that contribute to lower rates, the one factor that is consistent among all providers of car insurance is that a clean driving record is critical to your rate. Although accidents are sometimes unavoidable, it is imperative that you adhere to all traffic regulations and that you drive safely at all times. This will reduce the number of traffic violations that you incur as well as the number of accidents that you cause. Following these tips will help you to maintain a clean driving record that will keep the cost of your car insurance low.

Many drivers lament paying their monthly car insurance bill because they feel as though the insurance isn’t necessary. Although car insurance is a financial burden that seems superfluous, it does pay off if you are ever in a serious car accident that has significant financial ramifications. For this reason, you should never consider allowing your car insurance to lapse and it is recommended that you search diligently to find the best available rate on your car insurance.