Posts Tagged ‘auto insurance new car’

Getting Low Auto Insurance Rate For A New Car

Thursday, June 21st, 2012

Most people understand that buying a new car will be a big investment, since they will be saddled with a new car payment bill each month. But did you know that your auto insurance bill will likely go up considerably as well? You would think that a new car would be cheaper to insure, since it comes with more safety features — but it is also more expensive to replace should it get hit or stolen. Here are a few tips for finding reasonable auto insurance rates on your new ride.

Safety Features

No matter which vehicle you decide upon, look for car features like…

  • Side & Head Air Bags
  • Passive Restraint Seat Belts
  • A Security System
  • Anti-Theft Etching
  • Anti-Lock Brakes
  • Traction Control

Safety Ratings

Also, be sure to check out the Insurance Institute for Highway Safety’s annual crash test scores. Their list of Top Safety Picks For 2012 includes vehicles like: the Fiat 500, Toyota Yaris, Chevy Cruze, Honda Civic, Toyota Prius, Scion, Audi A3, Chevy Malibu, Ford Fusion, Volvo S60, Buick LaCrosse, Mitsubishi Outlander, Chevy Equinox, Dodge Durango, Chrysler Town & Country, and Ford F-150. Better scores mean better auto insurance rates.

Cheap Repairs

You will also want to look for a car that is inexpensive to repair. The cars you see the most of on the street tend to be the ones that are have the highest number of parts available — Cobalts, Corollas, Cruzes, Focuses, F-150s, Malibus, Tauruses, Impalas, Camrys, Ultimas, etc. Check out Automobile.com’s list of Cheapest Cars To Repair

While you’re considering which new vehicle to buy, why not peruse a couple quotes to compare how much you would pay for your top 2-3 choices? You can do it right here — FREE!

auto insurance

How Will Buying a Car Affect My Insurance Premium

Tuesday, November 8th, 2011

Auto insurance companies consider a number of factors when determining whether to offer to insure you as a driver and how much to charge for coverage. Each company determines how much weight to give to individual factors, but you can probably expect that the insurance company will look at the following when making this determination:

  • Age and gender
  • Driving record
  • How long driver has been licensed
  • Marital status
  • Where the car will be garaged

Your age and gender matters to the insurance company because they know that young drivers (especially males) are more likely to be involved in an accident. By the time a new driver celebrates his or her 25th birthday, auto insurance rates should start to come down.

Driving record is an important consideration when auto insurance companies are setting rates for their policyholders. If your history behind the wheel includes traffic tickets or one or more accidents, you will be charged higher rates for your coverage than someone who has a clean driving record.

Marital status is also factored in when auto insurance providers are setting rates. Companies consider married policyholders to be more responsible and a lower risk for car insurance purposes than their single counterparts.

You may not think where you live matters when setting auto insurance rates. Insurance companies keep track of locations where claims are made and if you happen to live in an area which has a history of car thefts, you may be charged higher rates.

People who live in large metropolitan areas are also charged higher rates for their coverage. The fact that there are more cars on the road in an urban area means that the likelihood of a collision is higher than for people who live in a rural part of the country.

Type of Vehicle and Your Auto Insurance Rate

The make and model of the vehicle you drive also affects your auto insurance rate. Insurance companies keep track of the types of vehicles which are most likely to be involved in accidents.

If you are looking to buy a new car, you need to understand that you will likely be paying higher rates to insure it. The physical damage part of the policy pays out based on the car’s cash value, which makes a new car a riskier proposition for the insurance company. The insurer looks at how much it is likely to have to pay out for claims when setting rates for its policyholders.

Policyholders who drive sports cars can expect to pay higher rates than consumers who choose a vehicle which is not meant to be driven fast (and is more likely to be involved in a collision as a result). Other vehicles, like SUVs, cost more to insure because they are more likely to inflict damage on another driver’s vehicle if a collision occurs.

If you are considering buying a new car, make a point of contacting insurance providers to get quotes to get coverage for your new ride. You will want to factor this cost in when making a buying decision.

Can I Sell and Replace My Car While My Insurance Policy is in Force

Wednesday, October 19th, 2011

Car owners who are wondering whether they can sell and replace their car while their insurance policy is in force can put their mind at ease on this issue. You can choose to trade in or sell your car privately at any time you wish. If you decide to make a change, you will need to let your auto insurance company know so that it can take the appropriate action.

Auto Insurance Basics

Auto insurance is a contract between a driver and the company. The driver agrees to pay a certain amount in premiums and in return, the insurance company will provide coverage for specified losses up to the policy limit the driver has agreed to buy. When the policy is issued, it specifies that it covers specific vehicles only.

As part of the application process, the insurance company will ask about the vehicle’s specific make and model year. When you are ready to arrange coverage, it will ask for the Vehicle Identification Number (VIN) and the car’s license plate. The insurance coverage is granted to the car, not the person driving it, and for this reason the insurance company will gather details about the vehicle which is being covered under the policy.

Selling and Replacing a Car While Insured

If you have decided to trade in or sell your car during your policy term, let your insurance company know about your plans. You will need to arrange for coverage for your new car before you start driving it.

Call the customer service department of your insurance company inform it of your plans once you have made a decision about your next vehicle. You can also contact the insurer if you have narrowed down your choices to a few models and you would like to find out how much it would cost to insure them.

Buying a car is a major purchase. You will want to make sure that you can afford the payments if you are financing the vehicle, as well as the insurance premiums. The information your insurance company provides can help you to decide whether to go ahead with the purchase or not.

A change in circumstances, such as buying a new vehicle, is a good time to consider other car insurance providers. Go online to get quotes for coverage from a few insurance companies to compare rates. You may be able to find a lower price for your coverage from a new provider.

Selling Your Car Outright

If you are planning to sell your car and not replace it, you will need to cancel your policy as of the date of sale. Your insurance policy documents will specify how to cancel your coverage, and you can contact the company to find out the right procedure for doing so.

Don’t simply stop paying the premiums, as the company will cancel your policy for nonpayment. This event will create a gap in coverage and you may find it difficult to get insurance later on because of it.