Learn How To Buy A Car And Car Insurance Without Breaking Your Budget

Have you ever wondered why different cars cost you different amounts in car insurance premiums? How come a new Corvette can cost you $1,600 a month in car insurance and an older Buick Regal only costs you $90 a month? The cost of insuring a new car versus the cost of insuring an older car is something you need to look at before you buy a car. Look at insurance costs before you buy and you won’t be caught in a financial trap.

New cars cost more to insure than old cars for three reasons. First, a new, exotic car costs a lot more to steal than an older, average-style car. This is due to the large difference in value between a new car and an older car. For example, it is much more expensive to insure a new Chevy Caprice than an older Chevy Caprice. It is simply more expensive to replace a new, expensive car than an older, less expensive car.

Second, the cost of repairing a new car is much higher than the cost of repairing an old car. As such, this fact will also increase the cost of your insurance premium for a new car. For example, if a new Chevy Caprice is damaged in an accident, the auto repair shop will charge you a much higher repair fee than if the car in question was a ten-year-old Chevy Caprice. For this reason, your insurer will charge you much higher insurance premiums for a new vehicle than for an older vehicle because of these repair costs.

Third, the style and type of car also greatly affects the cost of the auto insurance premiums your insurance company will charge you. Insurance companies use actuarial statistics tables that tell them what losses certain styles and types of cars have suffered in the past. They use these tables to help them calculate the premiums to charge their customers in the future. The statistical tables show these insurance companies that owners of certain styles and types of cars, such as sports cars, have riskier driving behavior than owners of average types and styles of cars.

For example, the insurance companies’ statistical tables show that the insurer has experienced more claims with sports cars than with average cars. This is because the owner of a Corvette is likely to drive his car faster and riskier than the owner of a Toyota Camry. With this speed and risk also comes increased losses for insurance companies. With such an increase in risk and loss, the insurance company then has to increase its return and charge more for car insurance premiums.

Another example of how the type and style of vehicle can present a higher risk to an insurance company is off-road vehicles such as the Hummer line. These vehicles are designed to operate in an off-road environment. They are higher off the ground than regular automobiles to allow for clearance under the vehicle. In addition, they are equipped with four-wheel drive.

With such design capabilities, statistical tables show that the insurance company has experienced more claims with these types of cars than with regular cars. This is because the owners of these vehicles engage in off-road driving, which is both risky for the vehicle and the driver. In fact, some insurance companies may prohibit recovery of such damages, when the owner of the insured vehicle has been damaged while engaging in risky off-road driving. Again, with more risk, the insurance company will increase the return and therefore the auto insurance premiums. Now that you know that certain styles and types of cars cost more to insure than others, you need to be smart about the type of vehicle you buy.

Rather than guessing what you think the cost of insuring a vehicle will be, call your auto insurance company and ask your insurance agent for a free quote for the exact type of vehicle you want to buy. This will give you a definitive answer to the question of whether you can afford both the car and the insurance premiums needed to cover it against insured losses.