Archive for the 'car research' Category
Selecting new car insurance
The experience of buying a new car can be both frustrating and exhilarating. Selecting a single car from the number of makes, models, options and features available can quickly make one’s head ache. However selecting your new car is only part of the process - one must also select new car insurance from one of the many products on the market. Start learning about various new car insurance offerings long before you finalise the purchase of your new car.
Various factors affect new car insurance premiums, and bearing these in mind when deciding on your purchase can make the process quicker and less troublesome.
Selecting the best new car insurance for your needs
The financial outlay for your new car insurance may vary quite a bit. Before you are overwhelmed by the numerous showroom possibilities and salesperson smoothtalk, take the time to make a list what you want from your new car. At this time, it’s also prudent to consider factors which companies providing your new car insurance will consider when quoting your insurance rate.
Factors which can impact on new car insurance premiums are:
* How you use your car
* The number of passengers you generally carry
* How often you drive your car
* Where you drive your car
Considering these factors will not only help select the best car for you, they could also save on your new car insurance premiums.
Features to consider when you buy
Make a list of the criteria you consider most important for your new car to have. You may want to consider: engine power, fuel efficiency, carbon emissions, transmission type, head and leg room, safety features (eg side airbags, reversing camera) and security features. Some of these are items for which new car insurance companies will give you a premium reduction.
Looking at manufacturers websites can be a quick convenient way not only to find out what is available, but can also list the cost of the various options and add-ons which will affect your new car insurance quote.
Considering Cost
Considering all costs associated with your new car will insure no nasty financial surprises down the road. In addition to the sticker price, consider fuel consumption, expected maintenance, financing costs and of course, your new car insurance.
The replacement cost of your car has a significant impact on your new car insurance payments. A high-priced luxury or sports car will usually cost more to insure than a common economy car because they are more likely to be stolen and are also more expensive for the company providing your new car insurance to repair or replace.
Some cars are known for getting better new car insurance quotes than others. As an example, insurance for a $14,000 Dodge Neon will cost you the same as a Volvo XC70 costing $34,000. Over five years, Edmunds.com quote an average of $4,410 for the Dodge Neon and $4,605 for the Volvo.
Why are insurance premiums so similar for these cars where there is such a wide gap in their purcase prices?
The new car insurance companies favour the Volvo as in an accident it suffers less damage, imposes less damage, protects its passengers better and is less likely to be stolen.
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.
One national new car insurance provider lists the Dodge Neon as worse than the average car in three categories, backing up the reason that it is more costly to insure.
Research is important
Not only do you need to research into the features of your new car, you would do well to do some background research as well.
A large factor in the cost of new car insurance premiums is the sticker price of the vehicle - how much it would cost to replace if it was written off in an accident or stolen. The cost of repairing your vehicle also affects the cost of insurance, with cars having expensive replacement parts or being labor intensive to repair bringing higher premiums. Vehicles more prone to be involved in accidents and those which are common targets for theives will likewise create a higher new car insurance bill.
To find some of the data on the points mentioned above, visit the website of the Highway Loss Data Institute. Information includes collision repair costs, theft rates and injury claims for each vehicle model.
Shop around for your new car insurance
Insurance premiums will vary from company to company, so using a tool such as Insurance.com’s auto quote comparison tool can help you quickly compare rates across many new car insurance providers to find the cheapest without having to visit their sites individually.
It is much, much better to take your time in the beginning, and make sure that the new car insurance you choose is appropriate new car insurance for your needs.
Please note that this article should not be construed as financial advice. It’s important to do your own research when selecting your new car insurance.
This article is an extract from Mark Bennett’s comprehensive guide on obtaining new car insurance, which is available from AllFinanceAdvice.com. Mark Bennett is a staff writer for AllFinanceAdvice.com, and publishes regularly to other reputable financial websites and publications.
