More to the sticker price than meets the eye!
Buying a new car can be a very exciting and overwhelming experience. Sorting through options, makes, models and features is enough to make your head spin. Not to mention the financing and car insurance costs. However, being prepared before you shop can help make the buying process quicker and easier for you!
Identifying the ideal car for you.
Before heading out to the car dealership, make a list of what you are looking for in a new car. As you are writing the list, think about the same concerns a car insurance company would consider when quoting you a rate, such as:
*How do you use your car?
*How many passengers do you typically carry?
*How often do you drive your car?
*Where do you drive?
These factors will help you pinpoint the best car for you, while also helping to potentially keep your car insurance premium down.
Features to consider before you buy.
Make a list of all the features and options that are important to you, such as head and leg room, transmission type, engine, trunk size, airbags, security system, anti-lock brakes and other safety features. Car insurance companies often give discounts for some of these items; saving you significant money on your overall quote.
Also, check out auto manufacture's websites. Many have special pages that let you "shop" for your dream car - giving you the opportunity to select the features that are important to you, while also providing you with the true cost of these "extra perks."
Before you buy you should always factor in all costs involved with buying a new car, including sticker price, gas, maintenance, financing rates, taxes and car insurance.
How much you pay for your car has a powerful effect on your car insurance premium. A luxury car with all the latest safety features will typically cost more to insure than a no-frill economy car, due in part, because the higher-priced car may be more expensive to repair or is more likely to be stolen.
Yet some cars do consistently get better deals on car insurance rates than others. For example, a $14,000 Dodge Neon costs about the same amount to insure as a $34,000 Volvo XC70. According to Edmunds.com, the Dodge Neon would set you back an average of $4,410 in premiums over five years, while the Volvo would cost $4,605.
Why, you may ask?
The Volvo tends to receive a bigger insurance discount because it inflicts less damage to other cars in an accident, suffers less damage, has a lower theft rate and protects its passengers better in an accident.
According to one national insurance provider, the Dodge Neon does worse than the average car in all three categories, equaling the reason why it costs so much to insure.
Do your research!
Not only do you need to look at what your new car has to offer, you also need to do some background research as well.
Car insurance premiums are based partly on the price of the vehicle, which affects the replacement cost if it is stolen or "totaled" in an accident. How expensive the vehicle is to repair - including parts and labor - can also impact your insurance rate. In addition, surcharges may apply to vehicles that are frequently stolen or involved in accidents.
To find out if that next dream car might be more than you bargained for, visit Highway Loss Data Institute's website. Here you will find industry-wide information on injury claims, collision repair costs and theft rates by vehicle model.
Comparison shop before you buy.
Before you make your final decision, visit Insurance.com's auto quote comparison tool to find the best car insurance rate. There, you'll be able to compare car insurance rates from up to 12 insurance providers, helping you save time and money on your auto insurance.
Presently, Insurance.com offers consumers comparative car insurance quotes in every state except Massachusetts, Alaska and Hawaii.
Article Source: www.insurance.com