Type of car insured is one of the key factors affecting your insurance premium which can go up or down when the insured vehicle is changed. How does insurance premium change when you switch cars? This will totally depend on what was your old car and what did you buy instead. The fact of the matter is that you may pay as much as three times more car insurance or save the same amount when you switch totally different cars.
How Does Changing an Old Car with a New Model Affect Insurance?
Most people replace their old cars with a similar model new ones. In that case premiums may not go up at all. Yes the new automobile is more expensive and insurance company will have to pay more if it is totaled. Nonetheless, how many cars are totaled every year compared to how many cars insured? The answer is not many and the chance of a new car being totaled is low. On the plus side, a new car would come with better safety and security features that would reduce injuries in accidents and cut down on auto theft. These considerations would negate the effects of higher insurance valuations.
What Happens when You Switch a Sedan with a Sports Car?
However, if you switch from a family sedan to a sports car, SUV or 4×4 you may see substantial changes on your premiums. These cars are a lot more risky to insure because they are faster and more expensive. They cause more injuries and deaths in crashes, they get targeted more often by auto thieves and they get vandalized more often. There can be cases where premiums are tripled just because of the switch from a family car to sports one.
Sometimes, even a modest looking automobile can cause a surge on premiums. Engine size and sport facilities on a modest looking automobile could result in a little increase on premium charged. The best solution is to get auto insurance quotes with the details of new car you are considering and see how much it would affect the rates. You can get insurance quotes before buying a car.
You can also get alternative auto insurance quotes to see if your current insurer still remains competitive. A vehicle change can disturb the whole balance and you may end up switching insurers because of the savings and policy conditions. That is why it is smart to get a few quotes each time there is a major change in your life that can affect your auto insurance costs.
Insurance companies look at driving records of all the listed drivers including the policyholder when they calculate premiums. So, you really need to consider who are the drivers that can influence your insurance costs before buying a new car. In normal circumstances this wouldn’t matter much since you need to insure drivers who live with you and you need to buy a car regardless. However, you may want to think twice before buying a sports car when you have a teenage daughter or son because most insurers wouldn’t be happy with a sports car and teenage driver combination.