Insurance Services of Washington Blog
Are you planning on buying a new car? You save up to buy that dream car you have always wanted. Every dollar saved just to meet the price for that vehicle. When you actually go to buy that car, you may be surprised. You will find out that the price of the car is just the start for the total acquisition cost.
The total acquisition cost is the sum of the car's price, plus other costs associated with it when purchasing. You may need to pay more for car registration, taxes, and car insurance. It's easy to forget that there are other costs associated with buying a car other than its price. Looking further down the road, the total cost of ownership for your car will include fuel, maintenance, garage space, insurance, etc. If you can save on some of these, it can help lower your total costs.
How do car insurance costs differ from one car to another?
Foremost insurance providers, the main consideration for the cost of your insurance policy is the price of your vehicle. The more expensive the vehicle, the higher your policy cost will be. This is the general rule. Replacement parts are more expensive, general maintenance is also more expensive. This all contributes to the total policy price increasing. However, there are also some other factors that contribute to this.
The type of car
Sports cars have higher insurance costs. There is a direct correlation between horsepower and insurance premiums. The more horsepower, the higher the cost. These cars are meant to be driven faster. This makes them capable of travelling at greater speeds, which in turn increases risk. Statistically speaking, sports car also invites younger, riskier, and faster drivers.
How about SUVs?
It is surprising to think, but SUVs may cost less in terms of insurance premiums. Following the same concept, SUVs are not designed to be driven at higher speeds as compared to sports cars. The trade off on this instance will be on liability premiums. This aspect will cost more because of the potential amount of damage your SUV can inflict on other property.
What are other factors?
There are other factors that drive up insurance rates. Is your make and model prone to theft? What kind of driver are you? Are you a young and new driver? Or are you a more experienced driver? All of these are considered when assessing risk and determining the premium costs.
Saving up on insurance costs helps in keeping the total cost of ownership for your car lower. Choose a car that best fits your interests and consider the aspects that can keep your costs lower.
At Insurance Services of Washington Inc., we work hard in making sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (425) 868-1123 or Click Here to request a free quote.