If you are in the hunt for a car, then you are probably looking at costs and adding the numbers to figure out how much vehicle you can afford. But when it comes to owning a car, there are additional costs that you might not be considering right away. One example is the monthly insurance premiums you are going to have to pay.
However, many people do not factor in the cost of car insurance when purchasing a car. According to a report from Progressive Casualty Insurance Company, 40% of car buyers don’t think about car insurance costs when buying a vehicle.
“Not all cars are insured equal.”
Whether you are purchasing new or used, insurance is something you can’t avoid. Depending on the vehicle you purchase, your insurance costs might be higher than others. There are many factors that play a role in setting the price of car insurance.
However, you don’t have to wait until after you purchase a vehicle to know what these factors are. When looking around for your next vehicle, consider the following tips to help keep your monthly insurance costs low:
Check safety ratings: Is the model you are looking at purchasing notorious for its poor safety ratings? This is a big red flag to insurance providers, who will certainly raise your monthly costs with the anticipation that something could go wrong. According to the U.S. Department of Motor Vehicles, checking safety ratings will help you get an accurate perspective on how much car insurance you will need.
Know the different types of cars: Not all cars are insured the same and some are consistently insured at lower rates than others. For example, Bankrate noted that SUVs and pickup trucks cost less to insure on average, while sports cars and luxury automobiles cost more. While there are certainly exclusions to this rule, it is worth discussing this with your dealer.
Some safety features can help keep your insurance costs down.
Check the history of the specific vehicle: Being aware of the safety ratings for certain models and the general insurance rates for those models is helpful, but you can also check on the history of the specific car in the lot. Get an accident history and see if the car is prone to problems. Whether you do or do not, it is likely your insurance provider will, so you might as well get ahead of the game and know what you are in for.
Know about the safety features: Depending on the year of the car you are considering, there may be more modern safety features included. Many cars, especially newer models, have updated safety tools designed to assist the driver and keep the passengers safe. These can go a long way when weighed by the insurance company. Even though the car itself might be a bit more expensive than one that doesn’t have these features, it is worth balancing out what the cost will be after insurance payments are taken into account.
In summary, don’t just look at the price tag when it comes to purchasing a car, but also think about how your insurance will come into play. Insurance costs can add quite a bit to your monthly payments, but if you prepare ahead of time and plan for them, you can make smart decisions that will keep them low. Talk to your dealer and check out some free quotes from insurance providers to make the best decision for both your safety and your bank account.
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