If you are thinking about buying a new car, there are some auto insurance considerations to note. In general, new cars tend to cost more to insure as they are more valuable than used vehicles. Let's take a look at the specific ways in which buying a new vehicle affects your insurance.
Increased Safety Features
New vehicles are jam-packed with all sorts of helpful safety features. Driving an automobile that is safe keeps you and your passengers protected. Furthermore, a safe vehicle also safeguards your savings. If your new vehicle has safety features, it will likely lead to some auto insurance discounts. Examples of such safety systems include passive restraint systems like airbags and seat belts, daytime running lights and adaptive lights, anti-lock brakes, lane departure warning systems, blind spot detections, tire pressure monitoring and rearview cameras. Insurance companies are especially happy to do business with customers who buy new vehicles that have a stolen vehicle recovery system, an anti-theft system and an emergency response system.
A vehicle with an abundance of miles is not worth much. Therefore, it costs less to insure. Alternatively, a brand new vehicle will have few, if any, miles. Though it is true the value of an automobile decreases as soon as you drive it off the car dealership lot, the auto insurance is certainly high on day one. While low mileage is a good thing in the sense that it means a breakdown is less likely, the bottom line is new vehicles with low miles are much more valuable and consequently, more costly to insure.
Fewer Repairs and More Accessible Parts
The fact that the vehicle is new and will require few repairs drives down the cost of auto insurance. Furthermore, it is easier to access parts for a new vehicle compared to older vehicles. This is another key factor that keeps the cost of insuring a new automobile in check.
Think of the latest vehicles rolling off auto plant assembly lines as computers on wheels. These vehicles are loaded with all sorts of high-tech features and systems. Though these tech niceties are fun and helpful, they are costly to repair. This means your auto insurance rate will spike if you are in an accident that compromises any of the technology.
Make and Model
Certain automobile makes and models are at an especially high risk for theft. If you purchase a new automobile that is more statistically likely to be stolen, the insurance rate will be higher.
Vehicle Cost Impacts Insurance Rate
The bottom line is more expensive vehicles tend to be more costly to insure. However, there are ways to reduce auto insurance rates. Our insurance experts can help you find the optimal coverages for your vehicle to save you as much money as possible without exposing you to considerable risk.
Reach out to us today at Kyle Insurance Group - Affordable American Insurance to discuss auto insurance coverage options. You can contact us by phone at 303-465-9500 or visit our website to get started.