|(Photo credit: West Midlands Police)|
After all that, we call our insurance agent and write a check for the car insurance. We don't give our insurance any more thought than that. We put so much energy into the car purchase but not the cost of car insurance.
Why not reverse the process and research the car insurance first. We should be looking at the cost of the insurance for a particular size, cost and type of car. We should be picking the car to purchase by how much the insurance is. If you could save yourself $50 per month on your car insurance for the life of the car would it be worth it?
Here's a list of things you should consider before making that car purchase.
1. Research average repair costs
Cars that are more expensive to insure are generally more expensive to fix and sometimes require hard-to-find parts. Research the typical repair and maintenance costs for vehicles in your area. On many sites, you’ll find average ownership costs broken down into various categories. You can also research which cars cost the least (and most) to repair, which are worthy considerations (and ones that your insurance company will also take into account).
2. Know the stolen vehicle statistics
As you might imagine, cars that are more likely to be stolen are more expensive to insure. You can find stolen-car statistics through the National Insurance Crime Bureau. If you're shopping for a new car, the good news is that shiny new cars are not the most commonly stolen.
3. Go with a less expensive model
Add-ons that come standard on high-end models, such as sunroofs and built-in navigation systems, are nice to have but expensive to repair. Yes, this too means higher insurance premiums. You’ll be spending enough on your new car as it is, so if you’re willing to forget some of these luxuries, you can save on the sale price and on your insurance premium.
4. Research premiums
Before you buy your new car, go online to get a quote for that year, make, and model. The results may be enlightening. Though there are moves you can make to minimize your costs, such as increasing your deductibles or dropping comprehensive or collision coverage, it’s important not to sacrifice solid protection for a shiny new car. Check out auto insurance quotes online.
5. Avoid high-performance vehicles
Sports cars, large SUVs, luxury cars, and anything, well, souped-up all come with boosted insurance premiums because they generally cost more to repair or replace. Safety is also a factor — a small, zippy sports car generally offers fewer safety features and attracts more lead-footed drivers than a modest midsized sedan. Plus, these cars are typically gas guzzlers, which will also add to your expenses.
So unless you’re prepared to shoulder the many surrounding costs for your dream car, your best bet is to simply stay away from these high-end rides. Sensible choices reap their own rewards.
Don't buy that car until you check out how the purchase will affect you car insurance premium. You could save quite a bit every month for the life of the car.