5 Money-Saving Tips - How to Choose a Car That Is Cheap to Insure

Written by Tom Tennant on January 19, 2011 & Posted in Auto Insurance

hen you walk on to a car lot or begin searching for a new vehicle, the last thing on your mind may be the cost of auto insurance. However, the cost of car insurance should be one of the key factors you consider when you purchase a new car. According to Forbes.com, automobile insurance accounts for nearly 11 percent of total car ownership costs over a five year period--more than $2,000 on a $20,000 car.

If you're a cost-conscious driver who wants a great car and a low auto insurance bill, here are some tips on how to choose a car that may be cheap to insure.

  • Older cars with lower value. New cars almost always carry a higher premium than older models. For car insurance companies the more expensive a car is to buy, the more expensive it will be to replace or repair. Therefore, the higher the price tag of your car, the more you're likely to pay in insurance costs.
  • Safety record and features. The safer the car, the less likely you are to crash and file a claim. Choose a vehicle with a great crash-test score (a five-star rating from the National Highway Traffic Safety Administration) that's also loaded with safety features. In terms of big savings, anti-lock brakes top the list. Some states even require car insurance companies to provide discounts for cars equipped with them.
  • Theft rate. If you drive a car that thieves love to steal, you're going to pay higher premiums. In case you were curious, the Cadillac Escalade is the most stolen vehicle--and has been since 2002, according to the Highway Data Loss Institute. Ten out of every 1,000 Escalades are stolen, broken into or stripped for parts.
  • Performance and luxury. A high-performance car with a powerful engine is a clear signal to most automobile insurance companies that you drive fast and furious. That's why the Nissan GT-R sports car is one of the most expensive autos to insure, and the Mazda Tribute family SUV is one of the least expensive.
  • Size matters. Cars tend to command higher auto insurance rates than trucks and vans because they often have higher rates of injury and a greater number of insurance claims, according to the Insurance Institute for Highway Safety. Think about it. When an Escalade and Prius are involved in a crash, which one do you think will sustain the most damage?

If getting cheap car insurance is a priority to you, follow these simple tips while shopping for a new car and you can rest assured you'll get the cheapest car insurance possible. Make sure you shop around and compare different car insurance quotes to ensure that you get the best deal on cheap auto insurance. You could save yourself hundreds of dollars on car insurance.


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