When you purchase a car, not only do you need to take the initial cost of the vehicle itself into consideration, but also its maintenance cost. That means you need to consider the cost of registering it, its estimated MPG, how much repair it is likely to need, and how much it will take to insure it. Here are a few tips for making sure you're buying a car that won't cost you a fortune in insurance premiums.
1. Steer Clear of Sports Cars
Some people want a sexy sports car because they are fast, sleek status symbols. Insurance companies aren't stupid, they know that most people who purchase sports cars do so in order to drag race, drive too fast, and, all too often, get into accidents. If you're trying to do the sensible thing and avoid outrageous insurance premiums, you'll avoid sports cars like the plague.
2. Get an Unlikely Theft Target
Choosing a car that is stolen infrequently will reduce your premium, because a lot of insurance claims come from car theft. You might be surprised to learn that not all of the most infrequently stolen cars are jalopy junkers. The Audi A6, Lexus RX 350, and the BMW 5 Series are all on the list of least stolen vehicles. That means you need not restrict yourself to buying an ugly car to avoid a premium hike.
3. Is it Expensive to Replace? It's Probably Expensive to Insure
Much of your insurance premium is calculated on the cost to replace your vehicle if it is totaled or stolen. If you have your heart set on a high end vehicle, consider buying it used. Used vehicles are less valuable, and therefore cheaper to insure.
4. Don't Go too Big
The larger your vehicle is, the more likely it is to inflict damage upon other vehicles and drivers in an accident. Because of that, you will require extra liability coverage. Driving a huge SUV instead of a minivan will raise your premium, not to mention your gas expenses.
5. Souped-Up Translates to Dollar Signs
Modifying your vehicle or purchasing a car or truck with a very high horsepower engine will cost you on your premium. Cars with powerful engines are likely to cause more damage than cars with factory issued engines. If you need a lot of horsepower because you're hauling heavy loads, there's no way around it. Otherwise, avoid paying extra for more horsepower at the dealership and then again on your insurance premium.
Many factors affect the cost of your car insurance. Using these tips as a guide, though, you can save a lot of money.
