Did you know that October through December is the best time to buy a car? In the fall, dealers are trying to clear the lots to make way for next year’s models, and by the last two weeks in December, they’re trying to hit year-end sales goals.
You’re already spending thousands of dollars when you decide to buy a new or used car, so knowing when to buy can help you save big. However, it’s important not to get hung up on sticker price alone. Don’t forget to consider the other expenses of owning a car, like paying for car insurance.
Many factors determine your annual car insurance premium, including the car itself. If you’re in the market for a new vehicle and want to know how you can make a cost-effective decision, keep reading these tips on how to shop for the cheapest car to insure.
Research Premium Rates
Before you buy a new car, go online and get a quote for that vehicle’s year, make, and model. The numbers may surprise you. Although there are ways to save money on car insurance, like increasing your deductibles or dropping certain types of coverages, you shouldn’t sacrifice coverage for the sake of driving your dream car.
Your premium rate can also serve as an indication of how much you can expect to spend to maintain and service the vehicle. For instance, the cheaper the insurance, the cheaper it is to own the vehicle, typically.
Know Which Vehicles to Avoid
Insurance providers establish pricing based on the driver’s and the vehicle’s risk. Providers determine a vehicle’s risk by looking at claim histories, including repair costs, accidents, and theft. The more claims a particular model has—and the more costly those claims are—the more expensive the vehicle is to insure.
The following types of vehicles usually have higher car insurance rates:
- Large SUVs
- Sports cars
- High-end luxury cars
- Electric vehicles
These vehicles cost more to repair or replace, which is why they often carry inflated insurance premiums. Unless you’re financially prepared to handle the additional expenses of driving your dream car, you’re probably better off avoiding these high-performance rides by opting for something a little more practical.
Research Repair Costs
Owning a vehicle costs money; you ultimately need to decide how much you’re comfortable spending to maintain your vehicle. You can look at the ownership costs of different makes and models online, including which cars cost the least and most to repair. The Kelley Blue Book 5-Year Cost to Own tool is useful.
Go for the Less Expensive Model
Features like built-in GPS, heated seats, sunroofs, and premium sound systems are great to have, but expensive to fix, which means higher insurance premiums. If you’re shelling out for a new car, you could save on the sticker price and your insurance premium by forgoing some of these luxuries.
The annual premium for a base model could cost hundreds of dollars fewer than a high-end model with all the bells and whistles. Car manufacturers bundle these bells and whistles into various trim levels. For instance, trim levels for a Honda Civic start at the base-level L, followed by LE, SE, and XLE, each with more features and a higher sticker price than the last.
Before you buy your next car, take a little time to research and understand how your car insurance premium will be affected. Get a free auto insurance quote from ABC Insurance Agencies to see what you could expect to spend each month.
We’ve been helping drivers in Louisiana and Texas stay safe and save money on car insurance for more than 30 years. For more information on how ABC Insurance can help you make A Better Choice on insurance, call 1-800-708-0123, click, or visit a friendly ABC Insurance Agent near you today!
The information provided in this blog is designed to give helpful advice on the topic discussed. It is not intended to provide legal or any other type of advice and is not meant to be a thorough discussion of every issue that a person should consider or may encounter. ABC is not responsible or liable for the availability of links to websites or resources, or for any content, advertising, products, services or other materials on or available through these websites or resources or your reliance thereon. Any references to third party rates or products are subject to change without notice. Trademarks are property of their respective owners. ABC Insurance Agencies-members of the National General Insurance Group, Winston-Salem, NC.