There are many things that go into what you end up paying for your car insurance, and even though insurance on a new car can certainly cost more than a much older one, there are times when you pay less for a newer car in the end. Why? There are numerous reasons for this.
The things that can make insurance for newer cars less expensive include advances such as anti-theft devices, keys that only work for that particular vehicle, and special features such as advanced seat belts and even collision sensors. We’ll take a look at these three and more as we continue.
1. Anti-Theft Devices
Newer cars tend to come with more technologically advanced safety features, and one of these is the anti-theft devices. These include an alarm system that produces a very loud sound whenever someone tries to steal the car, which is a definite deterrent.
Anti-theft technology such as this is more efficient than ever before, and because it is included in lots of new cars right now, this is yet another advantage you’ll have when shopping for car insurance.
2. Specialized Keys
Many new cars have specialized keys that have computer chips inside of them so that they only work with your car and no one else’s. What this also means is that no one can use a key from another car that is the same make or model and unlock your vehicle.
These keys are more expensive to replace, but this is a minor disadvantage once you consider how much safer your car will be. Your car simply won’t work, in other words, unless the person trying to open it has this particular key in hand, which means it is all but impossible for someone to break into your car.
3. More Advanced Safety Features
A brand-new car is also much more likely to have numerous advanced safety features, and these usually include:
- Advanced seat belts.
- Air bags that deploy at various rates, which depends on the speed you’ve obtained at the moment of the crash.
- Anti-lock brakes, which have been proven to be much safer and more reliable.
- Bluetooth technology for hands-free cell phone use.
- Collision sensors that prevent collisions from happening in the first place.
- Daytime running lights.
- More advanced frames and bumpers that result in less damages in an accident and therefore save the insurance company some money on repairs.
- Navigation systems that keep the driver more focused because the car is telling them how to get to the destination.
- Rear backup cameras to allow you to view what is going on behind you.
- Vehicle stability systems that keep cars on the road even if the driver suddenly loses control of the vehicle.
Since older cars do not have most of these features, they can sometimes be more expensive to insure than a newer car. Naturally, other factors will affect the premium amount you pay, but new cars can indeed be inexpensive to insure when features such as those mentioned above are included.
Frequently Asked Questions (FAQs)
What are other things that make a new car less expensive?
As a general rule, it is less expensive to insure a vehicle that has four doors versus two doors, that are not sports models, and which are certain colors – namely, more neutral colors instead of bright ones.
What are some of the things insurance companies look at when determining insurance premiums?
Car insurance companies tend to look at three main things: the safety features and even the safety record/rating of the vehicle, the risk of the vehicle being stolen, and the cost to repair or replace the vehicle should something happen to it.
What are the typical discounts that most insurance companies offer to drivers?
The most common discount is applied when you bundle your car insurance with another type of insurance (with the same company, of course) or if you have multiple cars being insured by that company. You can also get a discount depending on the type of coverage you choose, such as liability only, full coverage, and so on.
How can I be sure I’m getting the best car insurance rate?
Your best bet is to work with a broker who works with all insurance companies and can compare all of the policies to come up with the one that best suits your needs.
While many factors go into the price you’ll pay for your car insurance, it is certainly possible to pay less for a new vehicle than for an older one. This is mainly due to the many technological advances found in most new cars and which make them harder to steal and much safer while they’re on the road.
It is still good to compare insurance companies, of course, so you can get a good rate, but at least now you know what to look for when you start shopping for a new car.