When buying a new car you already are spending quite a bit of money so learning how to save on insurance costs can be very beneficial! The national estimated insurance cost is about $1,605 each year. But the top rated “cheaper” car to insure runs at about $1,112 each year.
Research Before You Buy
The benefits of doing your research is obvious. All of the following have been shown to run cheaper insurance rates: Mazda, Honda, Fiat, Nissan, Hyundai, Subaru, Kia, Toyota, and Ford. The data or information used to determine the cheapest to most expensive is considered using the amount of incidents that particular car is involved in each year. A insurance company can insure many different models of cars. Usually, at the end of the year the company will take note of there is a increase of claims or a steady issue with a certain car. The period of time a company insures a type of car also adds to the amount of data they receive which then determines if there will be a rate increase or not.
For example, brand new models with no previous data, may then be considered by the expected popularity or performance of that vehicle. Safety ratings from the NHTSA (National Highway Traffic Safety Administration) help determine consider rates because cars with added features may prevent future incidents or repairs. The company will also look at the price of parts, the value of the car, performance of the car, collision features, and car security. Adding features to your car like safety equipment can cost more overall to repair. A higher trim level in any vehicle will almost always raise the rates.
Another factor many people might not realize is the profile of the driver play a part in the rates. It is most likely not a coincidence that many of the safer cars out there are family type vehicles. Family cars are more often driven by more cautious, observant drivers because they might have children or a certain kind of comfort when driving. Even if you do not have a family, you can benefit from buying one of these vehicles.
If your favorite make of vehicle was not on the list of the cheapest, there are still other ways to get a cheaper quote on car insurance. Driving certain stereotypes of vehicles can also hinder your rates. Sports cars have some of the highest rates out there because the owners can be younger, and more accident prone. High-end luxury vehicles are higher to insure because of the overall price of replacement for a pricey car. Electric vehicles while economically smart can be higher as well for several reasons, one being the EV battery can cost several thousand dollars.
That’s a Wrap
In a nutshell, your car insurance rate is based on 11 important factors: the drivers personal history and information, costs of damages or replacement of the car, (which can determine the comprehensive and collision sections) the amount of accidents or claims with that particular model, cost of the damage the vehicle can impose on others, (such as property or people) the company’s personal target client, mileage, (average distance driven per year) age and overall driving history, personal location, (heavy traffic, street parking or garage parking) weather conditions such as heavy snow, credit scoring, and last but not least, discounts. When buying a new vehicle paying attention to fuel costs, and repair costs is always smart, but car insurance will always be needed, so calculate that expense as well for the lowest rates possible!