New Car Insurance
|Picture: Illustration new car insurance|
New Car Insurance. Today, the United States is seeing a sort of car buying renaissance. Back in 2008 it seemed the world was falling apart for automobile dealerships, with many going out of business and auto manufacturers teetering on the edge of bankruptcy.
The good news is since 2011 sales have rebounded sharply. Consumers who were holding onto their old cars throughout the recession are now out shopping for newer or new replacement vehicles. With so many sales activities taking place, car insurers have also seen a boom in new policies.
While most people know exactly the new car they want to buy, it’s just as important to check new car insurance rates before you purchase any new vehicle.
Read Also: Quick Car Insurance Quote
Most expensive new cars to insure
If you’re in the market for a new car but on a tight budget, check out the cars that insurers charge the most rates for and stay away from them.
So many factors contribute to cars insurance pricing, and a major one is replacement costs. The more expensive a vehicle is to repair and replace, the more it will cost to insure.
Another key factor the insurers use to price new car insurance is accident test results. In general, the better a car performs in collisions, the cheaper the insurance will be for that new car model.
The institute for highway safety performs regular crash tests on new car models and carefully evaluates each models performance.
This information is passed along to insurers who then use it as an important factor in ensuring new cars. Also, each year the Institute reviews the real insurance losses for each car and passes that info along to insurance companies.
The more a certain new car brand sustains expensive losses, the more the insurers will charge to insure it.
Let’s look at last years, 2014 new cars, which were expensive to insure. If you need new driver insurance, stay away from these models because the rates will even be more expensive.
1. Jaguar XK series.
This car is very expensive to fix, and thus insurers charge about $4,000 a year for insuring this model.
2. Nissan GTR.
This powerful sports car is less expensive than a Ferrari but has nearly equal insurance costs.
3. Porsche 911
An exotic mainstay, the 911 is on the most expensive new cars to insure list year after year.
4. Mitsubishi Lancer
The Lancer looks boring, and it costs more to insure than a Porsche! Stay away from this car is you want cheaper auto insurance.
5. Audi R8
This convertible costs a small fortune to repair and replace. The average five year insurance cost is almost $22,000. That is a down payment on a small house! Audi makes a great sports car, but the insurance is outrageous.
6. Mercedes Benz SL and CL-Class
This Mercedes is a jewel of a car but has average monthly insurance rates of about $370. Younger drivers can expect to pay even more.
7. Porsche Panamera
The popular four door Porsche costs a lot to repair, even in minor accidents.
8. Mercedes SLS AMG
One of the most sought after Mercedes-Benz and also one of the most expensive to purchase and insure.
Did you notice that no American cars were on the list? American automobiles, while not perceived as exotic, can perform nearly as well as their Japanese and German counterparts.
For example, a new Cadillac can not only compete with many Mercedes-Benz models in performance tests, but actually beat them.
If you need an affordable new luxury car that also has great insurance rates, consider testing American brands first. Even the classic Corvette has cheaper insurance rates than the Nissan GTR and Porsche with near equal performance.
Cheapest New Cars to Insure
1. Ford Escape
This mid-size SUV is fun to drive and comes with many safety features.
2. Smart Car
The super small Smart car is a lot stronger than you might think and holds up well in crash tests, despite its small size.
3. Ford Edge
The Edge is safe, reliable and a cheap new vehicle to insure.
4. Subaru Outback
Subaru cars are not only famous for their reliability but their safety in accidents. Insurers almost always give great rates to Subaru buyers.
5. Jeep Compass
This popular Jeep model is a solid SUV. The price range is a bit high, but the cheaper insurance will make up for it.
6. Honda Odyssey
One of the most popular Minivans on the market, today is also the safest. This model has surround airbags, stability control and many other advanced safety systems insurers love.
7. Dodge Grand Caravan
Dodge invented the Minivan, and this popular model has great low rates on insurance.
8. Honda CRV
The new CRV has curtain airbags and standard backup cameras. Insurers have taken notice of the many new safety features and have rewarded buyers with great cheap rates.
9. Jeep Patriot and Sport
Four wheeling is not only fun, but now if you buy a Jeep, you can get some super affordable insurance rates too.
New Auto Insurance Facts
Did you know that size does matter when it comes to car insurance rates? Generally speaking, the larger cars such as Minivans and midsize SUVs are driven more carefully than sporty cars like a Porsche.
The larger cars also are safer and perform better in crashes. Smaller cars like the Honda Civic are often driven by younger drivers who just take more risks and thus get into more accidents. Models with a higher accident history are penalized by insurers with higher rates.
Higher performance equals higher rates. New cars that are extremely powerful such as a Porsche 911 are often pushed to the limit and get into accidents at a higher rate than less powerful cars like a Subaru. High-performance cars are also expensive to fix and replace, thus the higher premiums.
You want a powerful sports car but also low-cost insurance, consider a higher deductible to bring down the cost of your premiums. Also, take a certified driver safety class that will save you about 5% or more. If the sports car is a second vehicle, bundle it with your current policy and save even more.
Stay away from new cars that are frequently stolen. It’s an unfortunate fact that cars often stolen, will cost you in higher insurance costs.
Check out the top 10 most stolen cars list and if possible choose another model. Not only will you have a greater chance of not having your car stolen but will save on new car insurance.
Shop online for new auto insurance
You should get an auto insurance estimate for every car model you are thinking of buying before you set foot on a dealer lot. Use a free service like CarInsuranceEstimate.org and check rates in just a few seconds.
If you need a full quote, you can compare rates with several national insurers and even find special online discounts. Get started today and buy a cheaper insurance policy online. (*)