Car insurance is a legal requirement for driving throughout most of the United States. Unfortunately, the cost of insuring a car can amount to a significant part of the monthly and annual costs involved in vehicle ownership. This is why it is important to consider insurance costs and find possible ways to reduce them whenever shopping for a new or used car. If you have never considered how your buying choices might impact your overall costs during the years you own each vehicle, here are three questions to consider before agreeing to purchase your next vehicle.
Are thieves known to target the model you are looking at?
Insurance companies track instances of vehicle theft and vandalism as well as data from traffic crashes. Vehicles that are stolen or vandalized more often than others are rated at a higher level of risk and are more expensive to insure for all drivers. To avoid this rate increase, car buyers should always select vehicles that are not known to be a favorite for thieves and vandals.
Is the car you are interested in classified as a sporty or high-performance model?
Another factor in the cost of insuring a vehicle is whether or not it is classified as a sporty or high-performance model. Vehicles that are manufactured and marketed in this manner are assigned a higher risk because of their potential for accident or damage claims.
Would a used vehicle provide a comparable driving experience with lower costs to insure?
Opting to forego the new vehicle and choose a reliable used vehicle instead can result in major savings on car insurance costs. If the used vehicle also has an excellent safety rating, insurance rates are likely to be even lower.
Vehicle buyers who want to save additional money on their ongoing costs insurance should also verify their credit scores and driving records and set a goal to actively improve each one as quickly as possible. Insurance companies use data from both these sources to determine their risk level in providing insurance for you. Low numbers on either one may indicate that you routinely engage in risky behavior that might make it more likely for you to make an auto insurance claim.
To find more ways to reduce the amount of your car insurance premiums, it is also a good idea to meet with your current insurance agent about possible discounts, as well as taking time to price-shop your current rates with other agents who may offer additional discounts or more competitive rates.