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| Learn How To Buy A Car And Car Insurance Without Breaking Your Budget |
Do you ever wonder why different cars cost you different amounts
for auto insurance premiums? Why is it that a new Corvette may cost you
$1,600 dollars a month in auto insurance and an older Buick Regal may
only cost you $90 per month? The new car insurance cost versus the old
car insurance cost is a subject that you must review before you buy any
car. Review insurance costs before you buy and you will not get caught
in a financial trap.
New cars cost more to insure than old cars
for three reasons. First, an auto theft of a new and exotic car costs
much more than the auto theft of an older and average style car. This is
because of the large value difference of the new car versus old car.
For example, a new Chevy Caprice is much more costly to insure than an
older Chevy Caprice. It simply costs more money to replace a new,
expensive car than an older, less expensive car.
Second, the cost
to repair a new car is much more than the cost to repair an old car. As
such, this fact shall also increase your insurance premium cost for a
new car. For example, if a new Chevy Caprice is damaged in an accident,
the auto repair shop will charge you much more money for repairs than if
the subject car were a ten-year old Chevy Caprice. For this reason,
your insurer will charge you much more insurance premiums on a new
vehicle than an older vehicle because of such repair costs.
Third,
the style and type of car also shall greatly affect the cost of
automobile insurance premiums that your car insurance company will
charge you. Insurance companies use actuarial statistic tables which
show them the past loss experience on particular styles and types of
cars. They use these tables, to help calculate what premiums to charge
their customers in the future. Statistical tables show these insurance
companies that owners of certain styles and types of cars, such as
sports cars, engage in more risky driving behavior than owners of cars
that are of average type and style.
For example, insurance company
statistical tables show that the insurer has experienced more losses
with sports cars than with average cars. It is because the owner of a
Corvette will probably drive such car faster and riskier than the owner
of a Toyota Camry. With such speed and risk also comes along more losses
for the insurance companies. With such risk and loss increase, the
insurance company must then increase their return and charge more for
auto insurance premiums.
Another example of how the type and style
of vehicle may present an insurance company with more risk is the
off-road style vehicles such as the Hummer line of vehicles. These
vehicles are designed to perform in the off-road type environment. They
are raised up off the ground more than regular automobiles for under
carriage clearance. Additionally, they also have four-wheel drive
capability.
With such design capabilities, the statistical tables
show that the insurance company has experienced more losses with these
types of cars than regular cars. This is because the owners of such
vehicles will engage in off-road driving which is both risky to the
vehicle and driver. In fact, some insurance companies may bar recovery
for such damages, when the owner of the insured vehicle was damaged
while any engaging in risky, off-road driving. Again, with more risk,
the insurance company will increase return and thus auto insurance
premiums. Now that you know that certain styles and types of cars cost
more to insure than others, you have to be smart about what kind of
vehicle you are going to buy.
Rather than take a guess at what you
believe a vehicle's insurance costs are, call your car insurance
company and ask your insurance agent for a free car insurance quote for
the exact type of vehicle that you are interested in buying. You can get
a definitive answer to your question of whether or not you can afford
both the car and the insurance premiums required to cover your car
against insured losses.
The time to make such assessment is not
after you purchase a vehicle. At that point in time, it is too late. The
time to make such assessment is way in advance of your purchasing an
automobile. You definitely want to be able to make both car payments as
well as insurance premium payments. Get a free auto insurance quote
ahead of time and avoid financial problems.
