When shopping for a car, the buyer may have questions about the cost to insure a new car as well as the cost to insure one make and model versus another. Know what affects the cost of insurance from one car to another.
Many factors go into the cost of Massachusetts car insurance, such as where the vehicle is garaged as well as the operator driving record. Those things being equal, let's explore some things to understand about the actual vehicle that is being considered, and the cost to insure it.
Why consider the cost of car insurance when shopping for a new car
Most consumers will put in quite a bit of time and effort searching for the best price for a new car. Budget is often a consideration, and people do want to make sure they are buying a car within their price range and at a fair price.
One common mistake that consumers make when budgeting for a new car is examining either the sticker price or the monthly loan payment for that car. However it is also important to factor in the cost to insure the vehicle.
The cost to insure any particular vehicle will depend on may factors not the least of which are sticker price, cost to repair, vehicle-specific features, safety records, safety features, and high vs low profile of the vehicle.
Vehicle Sticker Price and car insurance
The greater the sticker price of a new or used car is, the more expensive it will be for an insurance company to replace it in the event of an accident. So generally speaking, the more expensive a car is, the more expensive the insurance will likely be for it. The added cost of insurance must be factored in to know if a car is truly affordable.
Vehicle Safety Features and car insurance
Safety features can have a big impact on car insurance. Features such as anti-lock brakes, airbags, automatic seatbelts, traction control, and airbags are statically proven to greatly reduce the number of accidents and /or injuries that occur while driving a car. The overall safety, class safety rating, and "crashworthiness" of a vehicle is also a factor.
You can check the safety rating for most cars here. Five stars indicate the highest safety rating and one star the lowest.
Cost to Repair and the effect on car insurance
The cost to repair the car is another factor that will influence insurance cost. The more expensive a car is, the more expensive the parts will be in the event it ever needs a replaced or repaired part. Then, there are certain brands of cars that usually require a dealership or specialty mechanic for even the simplest repair. These cars usually require brand-specific tools and diagnostic equipment. Additionally, the many new electronic features in newer cars are quite costly to repair. All of this will tend to result in higher insurance rates.
Car Specific Features and insurance
There are certain car features that will impact insurance cost. Hard top vs. soft top, number of doors, and size of engine would be feature examples. As a general rule, domestic cars and minivans are some of the less expensive types of vehicles to insure.
High Profile Vehicles and the cost to insure
Some cars are easier to steal and more valuable to car thieves than others. These "high profile" cars are considered magnets for auto theft, and therefore more expensive to insure. Here is a recent document from the Massachusetts Division of Insurance which lists high-theft vehicles from model year 2012 - 2016.
Here is an interesting article from Boston.com about the 10 most frequently stolen vehicles in Massachusetts.
You can also check out Insurance losses by make and model from the IIHS (Insurance Institute for Highway Safety Loss Data Institute)
All of the above influences on car insurance can dramatically increase the bottom line cost of acquiring a new car, as they can alter car insurance from a few dollars to several hundred dollars. It's a good idea to seek an insurance estimate before deciding if a car is a good deal.
Do you own a new or used car dealership in Massachusetts, Rhode Island, or nearby state? Did you know we have specialized insurance programs just for car dealerships. Call Chris Millerick at 857-816-4935 or contact us below 24/7 to get a quote.
With offices in Danvers & Winthrop Massachusetts, Elliot Whittier Insurance has been awarded the Five Star Award of Distinction from the Massachusetts Association of Insurance Agents. Elliot Whittier Insurance is also a Trusted Choice® Agency and represents multiple insurance companies, so it offers you a variety of personal and business coverage choices and can customize an insurance plan to meet your specialized needs. You can visit Elliot Whittier Insurance online at www.elliotwhittier.com or email email@example.com or call 800-696-3947