Many people choose a car to buy based on only a handful of factors, such as appearance, safety rating, engine power, gear, perceived quality and of course price. However, a handful of cautious and cost-conscious buyers think even further, considering factors such as maintenance costs and the cost of auto insurance.
One way to determine the cost of insurance for each model of car that you plan to buy is simply to call your insurance agent and put in order your list of models. However, this is time-consuming and it also means that you have to keep asking for further information if you have new car model ideas later.
A better way to shop for a car while keeping in mind future insurance premiums is to understand the factors that determine how insurance companies calculate premiums based on differences between car models.
If you’re looking for the lowest-priced car models, find out about the five factors that affect automobile insurance rates:
- Lower cost = low insurance premium:
Start by understanding this simple rule: cars that cost less to purchase also tend to cost less to insure. So, even if the price of the model you are considering will affect the amount you pay for monthly automatic payments, it will also affect the amount you pay for insurance.
- The degree of driving pleasure:
Your insurance premiums will also be kept as low as possible if you find a car that is not deemed to be fun to drive. The more the car is built to be fun to drive, the higher the rates are. Does it sound like a cruel thing in the insurance industry? This rule of thumb is based on very sensitive grounds. Cars with more power and sport suspension will be driven harder and more dangerously, on average. Think about the danger factor between minivan and Porsche.
- Profile of the average person driving this car:
Insurance companies keep an eye on the profiles of the average driver of each given model. They base their rates partly on this profile. What increases the costs are the profiles with factors such as the tendency to drive during peak hours, driving at night and driving aggressively.
- A car that ranks in terms of car theft:
Quite simply, stolen cars more often are more expensive to insure. This makes sense, of course: the insurance company predicts a greater likelihood that your car will be stolen if you buy a frequently stolen model. This means more important signs for your bonuses.
- Safety sheet and features:
Cars that offer better safety performance and more security features are naturally less prone to medical bill claims, which will result in a lower car insurance premium at your expense.
Keep these five factors in mind when looking for the car offering the cheapest insurance rate for teens.