Does it cost more to insure a new car?

Buying a new car

If you are thinking about buying a new car, you might wonder if you have to worry about your car insurance rates. That new car might be very tempting and very shiny, but how much is it going to cost to insure? You’re already going to be paying a lot of money for the vehicle, after all, and you’re a bit apprehensive about what those insurance rates are going to look like. Does a new car cost more to insure? Well, insurance rates are complicated, but here are a few things that you can keep in mind.

Does it cost more to insure a new car?

1. Make and model impact your rates.

The make and model of the vehicle make a difference in your rates. The insurance company is going to look at the car itself when they look at your rates. As you can imagine, a fancy, expensive sports car is likely going to cost more to insure than a sensible, super safe small SUV. You need to think about what car you’re interested in purchasing. The vehicle itself does matter.

2. New cars have safety features.

New cars can be equipped with some very handy safety features. For example, they may have things like lane assist and blind-spot detectors. These can help drivers stay, well, safer on the road. As a result, many insurance carriers offer some sort of discount if your vehicle has such features. If you think about it, these things have the potential to save lives. (Accidents are, of course, of great concern to insurance companies.) Also, distracted driving is a prevalent – and dangerous – issue, but these new safety features can help prevent incidents such as drifting lanes. And blind spot detectors can prevent someone from sideswiping a car that’s in that pesky corner that’s impossible to see.

3. New cars may be equipped with anti-theft features.

Another neat thing about newer cars is that they may come equipped with anti-theft features that make it harder to steal. (As you can imagine, the insurance companies are also concerned with how likely it is for the vehicle to be stolen, as that would be a pretty big loss they’d be paying out.) For example, vehicles with keyless features aren’t going to go very far unless that little fob is detected. Without the fob, the car isn’t really going to be persuaded to move.

The reason that we say all of this is that some insurance companies offer an anti-theft device discount if your car is tripped out with certain features that reduce the chance of a car thief absconding with it. (Essentially, the less chance of the insurance company having to pay out a big claim, the better.)

4. Bundling can also help.

We’d be remiss to talk about buying a car without mentioning the potential benefits of bundling. What’s bundling, you ask? Bundling is when you get multiple lines of coverage from the same company.

This could be beneficial for a few reasons. First of all, you could get a discount for getting your home (or renters) insurance and auto insurance from the same carrier. A lot of carriers offer a multi-line discount, and if this is a good option for you, you could see some significant savings. Second, it’s convenient. You only have to deal with one insurance carrier, which can make life easier.

Anyways, the point is that when buying a new car, you may want to consider bundling your home insurance and auto insurance. Just something to keep in mind.

5. Safe driving is a big deal.

Driving safe is also a big part of getting good rates for your car insurance. By keeping a clean driving record, you can set yourself up for getting better car insurance premiums. That’s because tickets and accidents indicate risk to an insurance company, and the less risk you present, the better for your insurance. Anyways, if you’re tearing around in your new ride, be careful and drive safe. (A lot of insurance companies have safe driver discounts, by the way.)

Those are a few things to think about insurance-wise if you’re curious about insurance rates for new cars. Want to get some quotes on car insurance? Great! Our team would be happy to help you get the coverage you need. You can get started with your car insurance quotes by filling out our online form, giving us a call, or messaging us on LiveChat.