One of the most common topics I discuss with customers is vehicles, especially new vehicles. The conversation usually starts off energetic, with clients speaking in great detail about their dream car, and how much they had wanted one of their own since they could remember.
The mood is quick to change, particularly when our discussion turns to cost, which would most certainly include auto Insurance. Understandably, the concern more often than not has to do with financial capacity, not only in regards to the actual purchase of the vehicle, but also with upkeep, fuel consumption, and insurance premiums.
As an insurance agent, I am always prepared to give advice on the financial aspects in regards to insurance and consider the best possible options with my clients. In terms of car ownership, one idea that gets floated around is buying a used car, as this is of course the cheaper alternative. I’m not one to discourage this, since this is often a wiser financial move for some.
If you are teetering between buying a new and used vehicle, I recommend that you keep in mind a few things impacting not only the quality of your driving experience, but also your insurance premiums, which are calculated on a number of factors. Generally speaking, look for things like mileage, apparent wear and tear, how well has the owner seemed to take care of it, cleanliness, etc.
Another influencing factor is the make and model of the car. Risks are calculated based on how the car is designed and the expected use. A sports car will most likely require higher premiums than a standard sedan, as insurers anticipate the former will be driven at high speeds, which can lead to a higher rate of accidents. Age is also a factor – but in a good way. Generally, the older the car, the less expensive the parts, so insurers are more likely to keep premiums at a comparatively lower rate.
There are other risk factors that play into calculating car insurance premiums, whether it be for a new or used vehicle. If you wish to learn more, call us today and we’ll help you gain the insight you need to make an informed decision.
