Do you ever wonder why different cars cost you different amounts for auto insurance premiums? Why is it a new Corvette might cost you $1,600 dollars per month in auto insurance and a mature Buick Regal may only set you back $90 per month? The brand new car insurance cost versus the old car insurance cost is a subject that you must review before you get any car. Review insurance costs before you get and you may not get caught in a financial trap.
New cars cost more to insure than old cars for three reasons. First, a car theft of a fresh and exotic car costs a lot more than the auto theft of an older and average style car. For the reason that of the large value difference of the new car versus old car. For instance, a new Chevy Caprice is a lot more expensive to insure than an older Chevy Caprice. It simply costs more money to replace a fresh, expensive car than an older, less expensive car.
Second, the cost to correct a new car is much more than the cost to repair an old car. Therefore, get more info shall can also increase your insurance premium cost for a new car. For example, in case a new Chevy Caprice is damaged within an accident, the auto repair center will charge you a lot more money for repairs than if the topic car were a ten-year old Chevy Caprice. For this reason, your insurer will charge you a lot more insurance premiums on a fresh vehicle than a mature 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 suggest to them the past loss experience on particular styles and forms of cars. They use these tables, to greatly help calculate what premiums to charge their customers in the future. Statistical tables show these insurance companies that owners of certain styles and forms of cars, such as for example sports cars, take part in more risky driving behavior than owners of cars which 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 compared to the owner of a Toyota Camry. With such speed and risk also occurs 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 may be the off-road style vehicles including 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 one of these types of cars than regular cars. Simply because the owners of such vehicles will engage in off-road driving which is both risky to the automobile and driver. Actually, some insurance companies may bar recovery for such damages, once the owner of the insured vehicle was damaged while any participating 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 need to be smart about what sort of vehicle you will definitely buy.
Rather than have a guess at what you believe a vehicle's insurance costs are, call your vehicle insurance company and ask your insurance agent for a free car insurance quote for the precise type of vehicle that you are interested in buying. You may get a definitive response to your question of if you can afford both the car and the insurance premiums necessary to cover your car against insured losses.
The time to make such assessment isn't after you purchase a vehicle. At that point in time, it really is too late. Enough time to make such assessment is way in advance of your purchasing a car. You definitely want to be in a position to make both car payments as well as insurance premium payments. Get yourself a free auto insurance quote ahead of time and avoid financial problems.