Insurance for a new car will cost more than it will for a used one. This is because new cars usually cost more to replace than used cars. However, sometimes used cars can be quite valuable and when this is the case, insurance will cost more. There are several factors that are taken into account when the price of insurance is determined. This needs to be understood before you purchase a used car instead of a new one, just to get a lower insurance premium.
When you are shopping for a car, it’s a good idea to get an insurance estimate from an insurance company. This will help you determine how much your monthly payments will cost. You should also ask about any discounts for which you might qualify. If you qualify for enough discounts reducing your premium, it might be reasonable to buy a new car instead of an old one.
Most insurance companies will review your policy with you to make sure you are getting the best possible rate. If they are not willing to do this, check with another company.
Published in by CARCHEX on November 13, 2014