As the temperatures rise and the summer months approach, the urge to buy a new car can strike. Many dealers are clearing out old models to make room for the new model year, and that can mean some great deals. If you are heading out to shop for some new wheels this summer, go out armed with some important information regarding how your car insurance will be affected.
New Cars, Higher Rates
If you are buying new, you can expect to see higher insurance rates. This is especially true if you are upgrading from a much older car. But not all new cars are created equal. Some will carry much higher rates than others, so shopping for insurance while you shop for a car is the smart way to avoid a surprise on the insurance bill.
Make a list of cars you’re considering and check online for a few car insurance quotes. It will give you a good idea of what to expect should you buy that car. It will also make clear pretty quickly which cars are more likely to bring high insurance rates. Being new is not the only factor that goes into higher rates. The type of car, including make, model, and style, have an impact too. And of course, the more valuable the car, the more likely it will carry a hefty insurance price tag.
Also be sure to check the car ratings; as each car is rated differently with insurance companies.
Which Cars Cost More?
There are a few common things to look out for when buying a new car. Sports cars are among the worst offenders in terms of insurance rates. This is because they are often expensive, cost more to repair, and have powerful engines that are statistically more likely to land them in an accident. Convertibles will also see higher rates because the risk of someone being seriously injured in an accident is higher in this type of vehicle.
It’s not only sports cars, however. Some import models may be more expensive due to the increased difficulty of obtaining parts for repairs. The more valuable your vehicle, and the more rare the model, the more likely the insurance will be expensive. A car that is likely to be stolen is also likely to have a higher insurance premium.
For the most part, there are two main factors that go into determining rates. These are the value of the vehicle and the risks associated with it. These are things that are easy to see when you shop. Of course, every insurance company is different, and you should still obtain insurance quotes since you might be surprised.
Ways to Reduce Rates
One of the best ways to get better rates on car insurance for your new car is to check for the latest safety features. The new technology available today means that new cars have advanced safety features that could mean insurance discounts. Look for things like back-up cameras, immobilizers that prevent theft, and other safety features to lower your rates.
You should also watch for cars that don’t fall on the top-stolen list, and cars that have easy availability of parts. That doesn’t mean all imports are off the list; many have plants in Canada or the U.S. making it easy to get parts.
Of course, the car itself isn’t the only factor in insurance rates. The insurance company and your driving record have an impact as well. It’s best to go shopping for a new car when your driving record is clean, so be careful you don’t pick up a ticket that could increase your rates. Of course, you can also save on your insurance by simply shopping around for better rates. In fact, when you are buying a new car is the perfect time to shop your rate around.
Make sure to shop around for multi-policy discounts as well; don’t only shop the rate on the new car, but on other cars you own as well. You can also shop around for home insurance at the same time and move everything to a new company with a new and lower rate to take advantage of all of the discounts available.
Taking the time to know all the tricks to save on insurance can make buying a new car this summer a lot more pleasant. You can focus on finding the car you really want and need without worrying that your insurance will be too expensive. Simply choose wisely, shop around, and know how the car you choose affects your insurance.
