How Buying a new Car Affects Car Insurance

When buying a new car, an insurance company will take into consideration some of the following factors before they give you a quotation on how much your car insurance will cost you. 

An expensive car that comes with all the latest features will be more expensive to insure as it has a much higher chance of being stolen and is more expensive to repair in case of an accident. Similarly, a car that has been modified to improve its engine performance or its body will also have higher insurance premiums to reflect these changes. The irony these days is that smaller, fuel efficient cars are also becoming more expensive to insure due to their high demand. It is therefore wise to check out a number of insurance providers to compare their rates and see which one is most competitive and gives you the best deal.  

The type of insurance cover you choose for your new car will also affect your premiums. A comprehensive cover means that in case of accidental damage to you or your car, coverage is provided for medical expenses, personal accident cover or loss of personal belongings. This type of cover is more expensive than third party insurance which provides minimum cover to the driver as it only protects pedestrians or drivers in case you cause them injury or damage their vehicle. Third party fire and theft insurance covers for fire and theft in addition to third party protection and both these insurance covers are relatively cheaper than comprehensive quotes.

If you have been a careful driver and built up a no claims discount, your premiums will be lowered to reflect this.  Insurance companies reward you as you haven’t made a claim on your policy and you can continue to benefit from lower premiums from a new insurer by providing written proof of this discount to them. Paying voluntary excess, which is the sum you choose to pay in case of a claim, will also reduce the insurance premiums you pay on a new car. 

The age of the driver is also taken into consideration by insurers as younger drivers are more likely to be involved in an accident than older drivers and also because they have not had the opportunity to build up a no clams discount. Buying a smaller car which is not modified can reduce insurance costs and also taking an advanced driving course means you get a discount from some insurers. The key is to drive safely to build a good record and shop around for an insurance company that is most competitive. 

Insurance companies need to know that your car will be kept safe and out of reach of easy theft or damage by vandals. Providing information to them about keeping your new car safe in a garage or having safety features installed in your car like an immobilizer or a car alarm will also help prove beneficial by lowering insurance premiums. 

The amount of driving you do in a year can also affect your premiums as someone who drives long distances will have a higher premium to someone who only uses their car for a short period every week. In addition the marital status of the driver and the type of job they do also play a part in increasing or decreasing insurance premiums.  

Insurers also use data on the area where you live to give you an insurance quote on your car. Some areas are high crime areas and pose a higher risk as far as theft and vandalism is concerned and premiums will reflect this by being much higher than in other  areas which are considered to be safer.