might be struck in wonder in determining different amounts you have to pay for auto insurance premiums. Before buying any car, you need to consider and review the insurance cost between an old car and the new one. You can set yourself free from the financial trap by reviewing the insurance costs before buying.
The following are the three reasons behind the difference between the insurance cost of a new car and an older one:
Auto Theft
In the scenario of auto theft, the cost involved in a new exotic car is something much more than an average style car. The reason behind lies in the fact that the value involved creates a huge difference. You can simply note that the cost to insure a new Chevy Caprice is much more than an older model of the same. If you are trying to replace a new exotic car would simply cost you more than when you are doing the same for a lesser expensive car.
Cost of Repair
When you are going ahead with a repair, you will find that the cost involved in repairing a new car will be quite more than the cost of repair for the older one. Therefore, the cost of the insurance premium simply is more expensive for the new car. Say suppose, if a new Chevy Caprice meets with an accident, you will be creating a hole in your pocket as the auto repair shop will hand you over a big invoice for the repairs than if the car was of an older version. This is the main reason behind the repair costs involved here as your insurer will be charging you more on your insurance premiums for a new vehicle than the older one.
The car model
The cost involved in the automobile insurance premiums that the car insurance company charges are well affected by the model or the style and type of car you have. Actuarial statistical tables are used by the insurance companies that portray the past loss experience on the particular model of the car. This helps them in the calculation of the premiums that they are going to charge their customers shortly. These statistical tables usually show the insurance companies that the owners of the particular model of the car mainly the sports car were involved in a greater risk of accidents owing to the risky behavior involved in driving. This helps them decide on the amount of premium they would be charging.
These statistics show the insurance company the number of losses they have experienced with the type of cars they have. Insurance companies might even set a bar for the recovery from such damages that are involved and thereby charges the drivers for their reckless behavior. The insurance company will also raise return thereby reflecting on the auto insurance premiums mainly due to the risk that is involved here. Now all you need is to be smart enough and decide on the best vehicle you want to put your money in as you are well aware of the certain models of the cars that can raise the cost of your general insurance premiums.
All you need is to call your car insurance company and get hold of a free quite for the type of model you are going to buy instead of guessing on the cost of car insurance is going to cost you. You also need to take some time to assess all the things that are related to car insurance and then going ahead with the purchase of an automobile. This way you are safeguarding both yourself and your car!
About the author:
Nitin Maheta is the Founder of techiemates.com and a tech geek. Besides blogging he love reading books, Learning new things, and Hanging out with friends.
