Insurance Considerations When Buying a Car

Many consumers buy new vehicles without giving a second thought to insurance considerations, and they end up paying the price down the road. Insurance issues should influence your buying decision just as much as purchase price, gas mileage, and other features. Here are the issues you should consider prior to buying a new car:

• Size - in general, the larger the vehicle you buy, the more expensive your car insurance offers will be. Larger vehicles are capable of inflicting more damage than other cars, which consequently hikes up their liability premiums. Buy a car that's large enough to accommodate your needs, but don't go overboard.


• Safety equipment - though buying the bare-bones car model with no extra features may save you money on the purchase price, it may also preclude you from taking advantage of valuable safety-equipment discounts. For example, an upgraded model of your new car might come with side-impact airbags or an anti-theft system, both of which would qualify you for lower car insurance offers with most insurers. Before you automatically select the cheapest model, consider if the insurance savings would make the upgrades worthwhile.


• Engine power - when you're trying to merge on the freeway with traffic bearing down on you, a V-8 engine with prodigious amounts of horsepower comes in handy. However, most of the time, it's just a waste of gas and a reason for your insurer to charge you higher rates. Cars with large, powerful engines usually have less affordable car insurance offers because their drivers tend to drive faster and more recklessly than others. So, if you have a choice between a normal engine and a supercharged bonanza, go with the less powerful of the two for considerable insurance savings.


• Model year - newer models always have more expensive car insurance offers than older vehicles. In other words, the newer your car is, the higher your premiums will be. If possible, you might consider opting for a slightly used car (perhaps one or two years old, for example) instead of a brand new car to save on your policy.


• Repair costs - pricey imported vehicles cost a bundle to repair, which will drive up the collision and comprehensive premiums on your policy. Try to find a car whose parts are affordable and readily available in the event it ever needs repaired.

When looking for insurance, the best deal is not the only factor to base your decision on. There are other factors for deciding the best insurer for you.