Castle Rock Insurance Agency

Save Money on a New Car

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Save Money on a New Car

One way to avoid sticker shock or buyer’s remorse when purchasing a new car is to consider expenses you may encounter down the road.

For instance, experts say that while most people anticipate the purchase price, taxes and registration fees associated with a vehicle, many forget that the insurance they need to protect their vehicle could come with a hefty price tag. Fortunately, there are ways to keep insurance costs down while maintaining the type and amount of coverage a new car typically requires.

Insurance Costs

Before you buy a car, you should check into how much it would cost to insure. Try talking with an independent insurance agent it may save you some money. Unlike “captive” agents who represent only one company, independent agents and brokers offer products from many different insurance companies. That means more choice and more opportunities for you to find the best coverage and service at the right price.

Does The Cost of A Vehicle Affect the Insurance Cost?

Yes and NO!

The NO: For the most part the amount you will pay for the liability portion of the insurance on your vehicle is pretty static, it is based on your location, age, driving history and usually credit (Yes - Credit), but that issue is for another article. However the safety features the vehicle has will affect the liability cost. These include, but are not limited to: Anti Lock Brakes, Air Bags, and Day Time Running Lights. 

Vehicles and Insurance Rating

The YES:  Vehicles are rated by several rating entities, including ISO (Insurance Services Office) The determine rating for losses with respect to Comprehensive (Fire & Theft) & Collision. These are based on statistics, not the vehicle cost. Here are some interesting examples of ratings.

•Honda Civics are more expensive to insure than Honda Accords
A Mercedes SUV  can be more expensive to insure than a Subaru Sedan
A Convertible Corvette can be less expensive to insure than a Mitsubishi Lancer that is 1/2 the price
A Porsche SUV can be less expensive to insure than a Hyundai Coupe

Keep in mind that things like Alarms, Recovery Devices, and Anti-Lock brakes will also reduce premiums.

Out of Pocket Costs

In metro areas like New York and New Jersey where insurance premiums can be costly, a savings in insurance can equate to a huge savings over the life of a car or even its lease. If you lease or buy a vehicle 'A' that is more money to lease than a vehicle 'B' but less to insure the insurance savings may compensate for the vehicle cost and allow you to step up to a better car or even just pocket the money.I have had several clients evaluate the cost difference between Hyundai Elantras and Honda Accords only to find that the three year cost of ownership for an Accord that has a sticker price $8000 over the Elantra was less expensive to own.  The deciding factor, the Insurance Cost and the Depreciation Factor.

Here are a few questions to ask an Independent Insurance Agent or Insurance Broker.

Can I get any discounts for my car’s safety features? Your auto insurance premium is based in part on the car’s value, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for safety features that reduce the risk of injuries or theft.

How does this insurance company handle claims? Price isn’t the only factor to consider. It’s a good idea to deal with a company that will be there for you when you need it around the clock.

What coverage do I need? Your specific needs may vary by the age of the car, your personal situation and other factors. 

Select an agent or broker who takes the time to answer your questions and who can help you find the combination of price, service and coverages that you need.

How to Save Money When Buying a Car

To help consumers control car costs from sticker price to insurance premiums Castle Rock Agency offers these tips:

Decide ahead of time how much money you can spend and what type of vehicle best suits your needs.

Research crash test and accident data. You can see crash test video and analysis from the Insurance Institute for Highway Safety online.

Check with several dealerships and get firm quotes in writing. Having quotes from several places can help you negotiate your best deal.

Shop around for financing. Rates vary between institutions.

Did You Know?

Unlike “captive” auto insurance agents who represent only one company, Independent Insurance Agents and Independent Insurance Brokers offer products from many different insurance companies. That means more opportunities to find the best coverage and service at the right price.

For a Quote on Auto Insurance Contact Us or Click here for an Auto Insurance Quote

Castle Rock Insurance Agency
Save Money on a New Car

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Thursday, October 19, 2017
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