Your New Car and Insurance

Purchasing a new car, truck, or SUV is something many people eagerly anticipate - despite having to deal with auto loans and leases, new insurance policies, and other less fun things, driving off the lot in a shiny new automobile is a feeling that cannot be matched. However, sometimes the sticker shock from a new car extends far beyond the price you are quoted at the dealership. Sometimes, it transfers over to the quote you get from your carrier, as well.

Why Is My New Automobile So Expensive to Insure?

• It's fast and sporty.
• It's big and tough.
• It's expensive.
• It's got special requirements.

• My track record isn't so great.

Carriers use many different factors to assess how much they need to charge for your coverage. When you apply for a quote, you will be expected to provide personal information about yourself, where you live, and how you plan to use your auto. You can also expect any prospective insurers to take a look at your driving record as well as statistics that pertain to the safety of the make and model for which you want to buy coverage.

Your Car

Sports cars, speedy, enhanced imports, expensive luxury rides, and large-scale SUVs and pick-up trucks all cost more to insure than other vehicles. From the carrier's point of view, this makes a lot of sense. Statistically, the first two types are likely to be driven irresponsibly, at fast speeds, and in ways that put the driver and other motorists at risk. Luxury autos are pricey for the obvious reason - they cost a lot to replace and a lot to repair, so the insurance company could be out a lot of money if you ever need to make a claim on your comprehensive or collision policies. Large SUVs and pick-ups, on the other hand, are less likely to sustain major damages in a collision. Instead, they are likely to inflict serious damages or injuries, and so their liability rates are proportionally higher.

Your History

While affordable pricing is still available for the above makes and models, you may have a more difficult time finding it if you have a bad driving record. More than one or two accidents, traffic tickets, or moving violations can seriously hamper your ability to obtain discounted auto insurance. In fact, you may find that while you take some time to allow your poor history to become a thing of the past, you are better off avoiding new or expensive cars and instead opting for ones that do not necessitate collision or comprehensive coverage. Then you can focus on paying for liability and becoming a cautious motorist so that your record will improve.