Drivers have a tendency to overlook the cost of auto insurance when investing in a new vehicle. Upgrading your ride will mean upgrading your insurance policy, and this isn't always an affordable task.
Fortunately, there are some auto features that can help keep insurance costs low.
Learn more about these features so that you can purchase a new vehicle without causing your auto insurance rates to skyrocket.
1. High Safety Ratings
The National Highway Traffic Safety Administration conducts numerous tests on every model of passenger vehicle before the model is introduced into the market. These tests allow officials to determine how well a given model will perform in the event of an accident.
Vehicles with a high safety rating tend to fare better in accidents. These highly-rated vehicles sustain less damage and passengers sustain fewer injuries during a collision. Cars with a low safety rating are more likely to experience catastrophic damage should they be involved in an accident.
The insurance rates for vehicles with a high safety rating tend to be lower, so pay attention to safety ratings when shopping for a new car.
2. Good Track Record
In addition to safety ratings, insurance companies use model-specific data to help calculate monthly rates.
An insurance company will likely cover numerous vehicles of the same make and model each year. By tracking the number of claims made and the value of those claims based on the vehicle model, insurance companies determine which vehicle models are costing them the most.
You can use this to your advantage when shopping for a new vehicle.
Talk to your insurance agent to determine which vehicle models are considered the most reliable by your insurance carrier. Limit your search to vehicles within that model group, and you will be able to keep your insurance rates low after purchasing a new vehicle.
3. Ownership Status
Auto insurance rates can vary based on the ownership status of the vehicle being covered. Most insurers classify vehicles as owned, leased, or financed. You may be able to get a lower rate if you pay the price of your new vehicle in full.
Cars that are leased or financed tend to have higher insurance premiums. This is due to the fact that a third-party (like the dealership or a financial institution) must be paid in the event a claim is filed.
If it's possible to buy your new vehicle outright, you should. Doing so could help you keep your insurance costs low over time.