Check out the Car Insurance cost when you get a New Car
When you think of buying a new car, you need to think of more factors before you finally get your dream car. Other than finance and other factors you also need to think of the car insurance cost which will be substantial depending on the make and model you buy.
When you get a car insurance quotes online and decide which make and model to buy, don’t be caught by surprise of the car insurance rates that can vary between different car insurance companies. Certain model can be very expensive due to its high performance or high cost to repair due to it limitation of spare parts to replace when accident happen.
Do your homework to get the car insurance quotes to preempt yourself not to overpay the premium when you get your new car.
(See: Buying Car Insurance: You Better Shop Around)
Below are some factors that car insurance companies generate car insurance premium
How safe is your car?
How can your car help you to avoid getting into a crash and when crash happen what are the safety features to keep your injuries to the lowest? Larger and heavier cars tend to be safer than small cars, however, this will not apply so much if we compare a small and mid size cars.
If we compare the same class of cars it will vary with different maker of the new car. What are the safety features or technology they input to protect the safety of the driver? It will be good that the insurance company know about the safety features of the new model which is latest in the market and still new to them. This will help them to better understand the risk involve and able to give you a cheaper car insurance quotation. (See: Why do SUV Owners Pay More for Car Insurance)
Accident repair and part replacement
High end vehicle like BMW, Mercedes, Maserati, Porsche, Audi, etc… will have a higher car insurance premium charge as it is more expensive to repair and replace their parts.
Luxury cars are costly to insure because you have to pay a lot to repair and replace them. Bigger cars will also cause more damage to third party if accident happen, therefore, the claims will also escalate.
High Performance Car
Insurance company will charge a high premium for such cars as it is deem to have the ability to reach high speed and this will greatly increase the probability of getting into an accident. The car insurance premium for young driver will definitely be much higher and don’t be shock that it can exceed S$10,000. (See: How to avoid spike in your Motor Car Insurance)
4. Target for Car Theft
High Performance cars (Ferrari, Lamborghini, Mc Laren) & High End cars (BMW, Mercedes, Jaguar, Porsche, Audi) are the usual target for car theft. The car insurance company will look at the statistics of car theft for this entire model to decide on their rates.Do take note that your car dealer will enforce that you need to get the car insurance with them otherwise there will be a penalty involve. However, it will not be make compulsory if you have a valid reason or you are able to get a lower quote to what they have given to you.