Buying A New Car? Be Sure to Consider the Price of Auto Insurance

by Tracy Paige

If you are shopping for a new car, you might narrowing your choices by examining the total cost of the vehicle over its lifetime. One major cost to consider is auto insurance.

Have You Decided Which Car to Buy?

Whether you have your mind set or you are narrowing down the options, now is a good time to find out about the insurability of the car. The safety of the car generally plays a role in the cost of premiums.

According to the Insurance Institute For Highway Safety, the top safety picks for 2010 are:

Audi A3
Buick LaCrosse
Chevrolet Malibu
Chrysler Sebring
Dodge Avenger
Dodge Journey
Ford Taurus
Honda Civic
Honda Element
Jeep Patriot
Kia Soul
Lincoln MKS
Nissan Cube
Subaru Impreza
Volkswagen Golf
Mercedes C class
Subaru Forester
Subaru Legacy
Subaru Outback
Subaru Tribeca
Volkswagen Jetta sedan
Volkswagen Passat sedan
Volkswagen Tiguan
Volvo C30
Volvo S80
Volvo XC60
Volvo XC90

If your dream car is on this list, great! If not, look at the safety ratings of the car you are considering, and see how well the car tested. Next, the retail cost of the car can determine the cost of your premium. Check to see what the rate of theft is on the car you are purchasing. If you are purchasing comprehensive coverage, this is important because the insurance company may have to pay in the event that the car is stolen.

Cheap Auto Insurance for Your New Car

You are now closer to that new car! If you are financing your car, check with your bank to see what level of auto insurance you are required to have until the loan is paid off.

According to the Insurance Information Institute, the average American spends $850 a year for auto insurance. Depending on the car you purchase, as well as the auto insurance coverage you want and need, your rates can vary. Make sure you shop around for auto insurance rates. Take a look at the rates and coverage that different insurers are offering. If you are undecided on which car to buy, get auto insurance quotes to check and see what the rates are on each model. Comparing rates is as easy as entering your zip code.

Sources

http://www.iii.org/Articles/What-determines-the-price-of-my-policy.html

http://www.iihs.org/ratings/default.aspx

About the Author

Tracy Paige is the Treasurer of a non-profit organization. She is also a multimedia specialist for an e-learning company. Tracy's experience includes banking and years of business management. She holds a bachelor's degree in Business, specialized in Finance.

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