Insurance prices vary widely, so research rates before purchasing a new car.
Do you think it’s primarily your driving record that influences the cost of your car insurance? It’s true your motor vehicles record is crucial, but it isn’t the only thing insurers consider.
Where you live and keep the car, where you drive regularly, how many miles you put on a car in a year, what coverage you choose, how much of the bill for an accident you are willing to pay (your deductible), what kind of vehicle it is and its price are all factors in your auto insurance premium. Even your credit score can play a role in some states.
Before you buy a new car, talk to your Trusted Choice® Independent Insurance Agent about your top picks to get an idea of what insuring the new vehicle will cost you. Prices can vary widely and surprisingly. For example, a smaller car might be more expensive to insure than a larger car, and some hybrids are costlier to cover than their gas counterparts because of the price of their components.
A vehicle’s safety rating is a major factor in insurance premiums, according to online auto mall Autobytel. For reference, the Insurance Institute for Highway Safety publishes a yearly list of vehicles in different size categories that do well in crash tests. Keep in mind that a large car that doesn’t get the highest safety rating might afford more protection than a smaller car that does receive a high safety rating. Of note: Almost all of Insure.com’s top-20 least expensive automobiles to insure in 2016 had good safety scores.
If you are willing to buy a used car, you might find you can get a certified vehicle with a warranty that already has depreciation built in and, therefore, costs a little less to insure than a brand-new version of the same vehicle. Remember, no matter what auto you choose, you should add the insurance premium into your calculations. Once you get a short list of your favorite choices, consult your Trusted Choice® Agent about car insurance rates to get a clear picture of what your new vehicle will actually cost to own.
Written by: Jennifer Burnett, Michigan Association of Insurance Agents