When you buy a new car, you’re probably crunching numbers. Maybe you’re estimating the cost of taxes and registration, or determining what your monthly auto loan payment will be. But whether you’re buying or leasing a car, it’s important to think about how that car make and model will also impact your car insurance rates.
Before we get into the details of how your car make and model impacts your insurance rates, let’s take care of a few basics. What is a car make? The make of your car is the brand or manufacturer, like Ford or Toyota. And what is a car model? The car model is the version or design of your car, like the Civic or Jetta.
Different vehicle makes and models have significantly different values. Some cars cost $30,000 new, while others can cost $100,000 or more. Your car insurance costs are partially based on your car’s value, because your insurance company may be responsible for repairing or replacing that car if you file a claim.
If you buy a more expensive make and model vehicle, you’ll pay more for your car insurance premiums because the insurance company is assuming more risk by insuring the vehicle. On the other hand, if you buy a less expensive make and model vehicle, your insurance premiums will be lower, because the company would pay less to repair or replace the car.
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In addition to the make and model of your car, your vehicle’s age also plays a role in your insurance premiums. If your vehicle is older (unless you have a classic car), it will be worth less than a newer vehicle, so your insurance premiums will be lower.
To save money on your car insurance costs, be strategic when it’s time to buy a new car. Instead of buying a brand-new vehicle, you could save some money on the purchase price and on your car insurance by buying used. Choosing a lower value make and model vehicle can help keep your car insurance costs down, too.
Your coverage choices will also impact your premium costs. Depending on your vehicle’s value and the amount of risk you’re comfortable with, you might choose policies with lower coverage limits or a higher deductible. If you buy a vehicle with safety features, like a car alarm and collision avoidance, you might qualify for some vehicle safety discounts from your insurance provider.
Don’t forget to shop around, too. You can get free car insurance quotes online today and can compare the policies and their premiums. Shop for car insurance about once a year to make sure that you’re still getting the best price on your coverage.
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Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
