By Jack Bennington
Do you ever wonder why
different cars cost you different amounts for auto insurance premiums? Why is
it that a new Corvette may cost you $1,600 dollars a month in auto insurance
and an older Buick Regal may only cost you $90 per month? The new car insurance
cost versus the old car insurance cost is a subject that you must review before
you buy any car. Review insurance costs before you buy and you will not get
caught in a financial trap
New cars cost more to
insure than old cars for three reasons. First, an auto theft of a new and
exotic car costs much more than the auto theft of an older and average style
car. This is because of the large value difference of the new car versus old
car. For example, a new Chevy Caprice is much more costly to insure than an
older Chevy Caprice. It simply costs more money to replace a new, expensive car
than an older, less expensive car
Second, the cost to
repair a new car is much more than the cost to repair an old car. As such, this
fact shall also increase your insurance premium cost for a new car. For
example, if a new Chevy Caprice is damaged in an accident, the auto repair shop
will charge you much more money for repairs than if the subject car were a
ten-year old Chevy Caprice. For this reason, your insurer will charge you much
more insurance premiums on a new vehicle than an older vehicle because of such
repair costs.
Third, the style and
type of car also shall greatly affect the cost of automobile insurance premiums
that your car insurance company will charge you. Insurance companies use
actuarial statistic tables which show them the past loss experience on
particular styles and types of cars. They use these tables, to help calculate
what premiums to charge their customers in the future. Statistical tables show
these insurance companies that owners of certain styles and types of cars, such
as sports cars, engage in more risky driving behavior than owners of cars that
are of average type and style
For example, insurance
company statistical tables show that the insurer has experienced more losses
with sports cars than with average cars. It is because the owner of a Corvette
will probably drive such car faster and riskier than the owner of a Toyota
Camry. With such speed and risk also comes along more losses for the insurance
companies. With such risk and loss increase, the insurance company must then
increase their return and charge more for auto insurance premiums
Another example of how
the type and style of vehicle may present an insurance company with more risk
is the off-road style vehicles such as the Hummer line of vehicles. These
vehicles are designed to perform in the off-road type environment. They are
raised up off the ground more than regular automobiles for under carriage
clearance. Additionally, they also have four-wheel drive capability
With such design capabilities,
the statistical tables show that the insurance company has experienced more
losses with these types of cars than regular cars. This is because the owners
of such vehicles will engage in off-road driving which is both risky to the
vehicle and driver. In fact, some insurance companies may bar recovery for such
damages, when the owner of the insured vehicle was damaged while any engaging
in risky, off-road driving. Again, with more risk, the insurance company will
increase return and thus auto insurance premiums. Now that you know that
certain styles and types of cars cost more to insure than others, you have to
be smart about what kind of vehicle you are going to buy
Rather than take a
guess at what you believe a vehicle's insurance costs are, call your car
insurance company and ask your insurance agent for a free car insurance quote
for the exact type of vehicle that you are interested in buying. You can get a
definitive answer to your question of whether or not you can afford both the
car and the insurance premiums required to cover your car against insured
losses
The time to make such
assessment is not after you purchase a vehicle. At that point in time, it is
too late. The time to make such assessment is way in advance of your purchasing
an automobile. You definitely want to be able to make both car payments as well
as insurance premium payments. Get a free auto insurance quote ahead of time
and avoid financial problems
By receiving affordable auto insurance you will be able to get the right car for you
and your budget
You may click the
following link to learn more about Alaska auto insurance. There, you may also get a free auto insurance quote by
entering your zip code in seconds
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