Do New Cars Cost More to Insure?

When considering purchasing a new or used car, you need to spend some time thinking about your insurance options as well. A lot of drivers fail to consider the cost of insurance coverage and what this can add on to your expenses for the vehicle. If you take this into consideration before you buy a vehicle, then you will know just how much you are going to have to spend overall. One thing worth considering is the fact that new cars often cost more to insure than owner sold used cars.

Once you are aware that a new car will often cost more to insurance than a used one, you can start to get some quotes for different new models to see which one will actually be the cheapest. In doing this research and getting quotes, you may find out that you cannot afford to get a new car and pay the higher costs of insurance. You make need to make a more sensible decision and go with an older vehicle. No matter what, getting quotes beforehand is going to be the best way to play out your purchase.

Reasons for Increased Costs

The main reason that insurance for a new car costs more than coverage for a used one is that new cars are simply worth more. Because of this fact, these cars are often a lot more expensive to repair. Insurance providers are aware of this, and that means that they are going to charge increased premiums. Furthermore, new cars are also more attractive to thieves, so they run a greater risk of getting stolen. Your insurance provider is going to be wary of this and will thus charge you more money accordingly.

New cars also cost a lot to insure because they often have the ability to go much faster than older, used vehicles. When you have such capabilities for speed, there is a greater chance of driving recklessly and getting involved in a car accident. If this happens, you would have to make a claim on your insurance policy. Your provider doesn't want this to happen and have to pay for these damages. Thus, you will end up getting charged an increased amount for premiums. If you go with a more sensible, older car, then you could see much lower premiums.

With new cars, you often have to secure a lot more different types of coverage, not to mention higher levels of basic coverage. If you really want to protect your new car, then you will need to consider things like gap coverage, collision coverage, comprehensive coverage and the like. When you add up the expenses for all these different types of coverage, you are looking at a lot of money. With an older car, there is often no need to have all of this coverage. If you don't have to add any extra coverage, then your monthly premiums are obviously going to be lower.

Finding Insurance Savings

Although new cars cost more to insure in most cases, there are still some ways that you can lower your premiums and save money each month. For one thing, you can simply compare quotes from a wide variety of different insurance providers. This will give you the opportunity to save a lot of money each month for starters. Also, make sure that the new car you choose is equipped with a lot of safety features. The safer your vehicle is, the more of a discount you are going to get when you apply for quotes.

Compare Car Insurance Quotes