Motorists may be under the impression that switching an old clunker with a shiny new one may increase their automobile insurance rates. However, latest models don’t either cost as much or the difference isn’t worth mentioning for various reasons, providing they are in the same range. Yet, it is worth having a close look at the ways you can keep premiums well under control and cases where you have no chance.
From time to time there is conflicting information about which automobiles would attract lower premiums. There are no hard and fast rules but we can answer a few questions by generalizing the responses you would get from underwriters in relation to a choice of automobile. As usual we cannot ignore the value, model, type, safety and security features when we consider rates.
Is It Cheaper to Insure a New or Used Auto?
A couple of year old automobile should still have up to date safety and security features and reasonable value. If they are similar types of cars there may not be much in terms of premium between them. Naturally, one would be more valuable than the other and therefore it may look that insuring a new car would be more expensive. However, if it has improved safety and security features you may get discounts and this will make up for the additional premiums may be required for higher value.
When it is much older and lost most of its value it may be a good idea to drop collision and comprehensive coverage from older auto insurance. This could save you money but it may not really be as much as you expect. Companies already take these things into account and should be able to offer cheap full coverage quotes that include collision and comprehensive.
How to Get Affordable Insurance for New Autos
Rates are affected by change of vehicle on the policy when the change is considerable. So here are a few points to keep in mind when you are shopping for a new vehicle and like to keep policy costs at bay.
- Let’s say you had a typical sedan and now you have a two-door sports car. It wouldn’t be a surprise if the premiums suddenly shoot up to twice the amount. When the chance of an accident increases because of speed rates will follow. The ones with large engine sizes and SUVs are other types vehicle insurers are not happy much and charge higher rates. Keep this in mind. Either avoid these types of vehicle or be prepared to pay a lot of money.
- Actually, there may be nothing special about your latest model automobile and certainly nothing like sports car or 4×4. And yet you can still face large automobile insurance increase because it is easy to steal. People may think that Porsche and BMW are most stolen cars. However, it was Honda Civic that was topping the lists for most stolen autos for years. Why, because it is a child’s play to break into. It is best to avoid them. You don’t want to be dealing with an auto theft any time soon anyway. You just have to look at the statistical figures because even a vehicle with latest security can be easy to break in because thieves use technology as well these days.
- You should pay attention to how safe is your latest vehicle. This is important for two reasons. First of all, they protect you and family better in cases of accidents. They reduce death and injuries substantially. Even simple features like advanced seat belts and air bags can be the difference between surviving a crash and not making. Secondly, safer autos qualify for discounts. Check some of the safest automobiles you can buy on that post.
- It becomes even more important to get a few quotes first when you are purchasing it for a teenage driver. They are already high risk and have to pay a lot more. So, it is best not to aggravate the problem and buy cheap to insure cars for teenagers.
- The best thing to do is to get several quotes before investing and see if underwriters like the car you like. At the end you may not make a decision based on quotes but it will help you understand the position and you will be prepared for what is coming. You don’t want to spend all your money and realize that you need a small fortune for a policy as well.
New Automobile Insurance Rating Score
One of the most effective ways of getting cheap rates is to find a vehicle that has lower rating score. The lower the score is the lower the premiums. The difference in costs can be as much as twice between considered high risk and fairly safe one.
Many people prefer smaller and lower policy cost cars especially in the cities and expensive zip codes. Having a smaller car means that you have a smaller engine that makes it easier to control. Powerful engines allow motorists speed much quickly and drive much faster. That is why possible accidents are likely to be more serious with loss of life and material damages.
Furthermore, automobiles with smaller engines and body is preferred by city residents because it is easy to park and economical to run. On the other hand, Large and powerful automobiles can be a real problem in the hands of younger, less experienced drivers in terms of accidents and coverage. Younger drivers mainly look at beauty and prestige when they want an auto. However, costs and practicality should always be included in considerations.
Personal choices will affect what type of an auto is picked at the end. However, there is no harm in looking to see if you can get cheap insurance for a new vehicle you love. You can have everything you want with your purchase. But you need to be prepared to spend few hours in front of a laptop checking and comparing details of various choices and for test-drives. People usually keep vehicles for several years. You don’t want to be paying high premiums in that time for the latest model car you picked because you haven’t done the research carefully.