Shopping for a new vehicle can be both exciting and overwhelming. There are dozens of features you have to look at and compare, including trunk size, gas mileage, type of transmission, upholstery and many more. But with all of these things on your mind, it’s easy to overlook one very important factor—car insurance. Your Maryland auto insurance rate for the new vehicle can surprise you, pleasantly or unpleasantly. In order to avoid such surprises, include car insurance on your car-shopping checklist from the beginning.
How does car insurance vary depending on a vehicle?
Different insurance companies may have slightly different mechanisms of calculating car insurance. There are many different elements at play here from your driving record to education and relationship status. But one of the biggest factors, of course, is the car you are planning to buy, which is what auto insurance is going to cover in case of an accident. It’s a fact that some vehicles are more expensive to insure than others. If insurance cost is an issue, be sure to consider these factors when choosing a new car.
Vehicle Cost
How much you pay for your car matters for insurance companies just as much as it matters to your pocket. Expensive vehicles are also expensive to repair and very expensive to replace in an event of a total loss. In 2014, the most expensive car to insure was the Nissan GT-R Track Edition that comes with a $115,000 price tag. Besides the vehicle’s price, insurance companies also look at the average cost of parts for your future car. Some foreign-made cars are quite expensive to maintain and repair, so this can also affect your insurance premiums.
Body Type
It’s no surprise that sports cars are more expensive to insure because they are driven at higher speeds, hence higher likelihood of an accident. But what about your regular sedans, SUVs and minivans? Turns out, larger vehicles may drive your insurance cost up for a different reason—the amount of damage they can cause to other cars. Average-sized sedans are generally a safe bet if you want lower premiums. Interestingly, Jeep Wrangler Sport was the cheapest vehicle to insure in 2014. Despite its adventurous vibe, Jeep is also known and used by many people as a family vehicle, which puts it in a low-risk driving category.
Horsepower
Did you set your heart on that Mustang with a V8 engine? That could cost you a pretty penny in car insurance. Insurance companies assume (and statistics confirms) that cars capable of going very fast will be driven at higher speeds than less powerful vehicles. If you want the extra horsepower “just in case,” think twice and consider your insurance premiums.
Theft Statistics
Now, this is something you wouldn’t know just by looking at a car. And it’s unlikely that the dealership will be sharing any numbers with you either. Stolen vehicle statistics are released annually by the National Insurance Crime Bureau (NICB) and insurance companies rely on it to an extent. For example, in 2013 the Honda Accord, Honda Civic and Chevrolet Silverado were the top three stolen cars. In 2014 they were likely more expensive for new buyers to insure than other vehicles.
Age
You car’s age does play a small role in insurance premium calculations. Typically, new cars are more expensive to insure due to the higher price tag. However, used cars can also cost you a hefty amount in insurance premiums because they are generally less safe to drive than a new car packed with modern safety features. Don’t automatically dismiss buying either a used or a new car assuming it will be expensive to insure—talk to your agent first!
Compare Insurance Before Buying a Car
Before you make that commitment, call your Maryland auto insurance agent and ask him or her to give you quotes on your top three vehicle choices. This easy step can save you a lot of headache and unpleasant surprises in the future. Call Freedom Insurance today and we’ll be happy to help you choose the right vehicle and the best insurance policy to protect it!
