New Car Discount on Automobile Insurance

New cars cost more money to buy in comparison to used ones and this typically leads to higher insurance costs. Nevertheless, new vehicles typically come with lower mileage, less wear and tear, enhanced safety features, and generally exhibit reduced likelihood of experiencing mechanical failures that could lead to accidents. Consequently, several insurance providers extend discounts to individuals seeking coverage for recently acquired new cars. Owning a new car may qualify motorists for a 10 – 15% vehicle insurance discount from several insurers.

GEICO and Travelers offer this savings to the owners of automobiles, which are less than 3 years old. On the other hand, Allstate requires the auto to be only one year old and you must be the first owner. And companies may not offer the discount in every state they operate.

New car discount from GEICO appears to be the largest at 15% and more inclusive as it allows the owners of vehicles up to 3 years old to qualify for it. Their website says that the discount is applied to certain coverage but doesn’t clarify which coverage. A discount’s effectiveness may be diminished when it only applies to certain coverage and not the entire vehicle insurance premium.

Traveler’s new vehicle insurance discount is also offered for up to 3 years and it is up to 10%. Allstate only provides this saving to automobiles under one year old and a further condition attached to it making it only available to first owners.

Usually, a variety of vehicle insurance discounts are offered to entice drivers, but frequently a single discount might not be sufficient to make a specific company more appealing than its competitors. However, GEICO genuinely offers one of the cheapest auto insurance rates for the owners of new vehicles, according to a price comparison study on website. Allstate ends up being one of the most expensive and Travelers don’t appear on the list.

Nationwide and State Farm don’t offer any specific discounts for owning a new automobile but they are two of the cheapest vehicle insurers for motorists with a fairly new car. Farm Bureau, Erie and Auto Owners are other good choices to consider, although they may not be available in every state.

So, while being eligible for discounts is advantageous, securing the best price should be the main goal. Drivers must avoid becoming ensnared by attractive incentives, refraining from selecting an automobile insurer solely based on discounts offered. It is imperative to get a few competing quotes from multiple carriers before making a decision. Ultimately, the best deal may be provided by a car insurance provider boasting the most competitive rates, rather than the one offering the highest number of discounts.

According to the same The Zebra study, new vehicle owners are paying on average 22% higher car insurance premiums in comparison to the owners with a 5-year-old automobile for the same coverage. This is due to the fact that a new auto is more valuable than the older models and costs more to repair and replace them.

When contemplating the purchase of a new model car, it’s important to factor in the associated insurance costs. Considering the likelihood of long-term ownership, opting for a vehicle that falls within the lower insurance cost bracket in comparison to similar models can lead to substantial savings over time. This doesn’t mean you need to give up the idea of owning a specific type of vehicle because of elevated insurance costs. Instead, by considering factors like engine size, speed capabilities, and safety ratings, you can make a well-informed choice.

To determine the most suitable vehicle insurer for your current circumstances, taking into account both your personal information and your car’s details, the most effective approach would be to obtain several insurance quotes. If you are currently looking to buy a new vehicle, it’s advisable to allocate some time to gather multiple insurance quotes for each potential make and model. This will allow you to factor in insurance costs when picking a car to buy.