Since used cars are less expensive to buy, many people assume that the car insurance will cost less. However, more often than not, new cars are less expensive to insure than used ones. The Insurance Exchange is one of the top insurance agencies in Montana.
Below, the experts provide the top three reasons why insurance quotes for new cars are usually lower than when you buy pre-owned:
- More Safety Features: From collision detection to back-up cameras, new cars come with more advanced safety technology that didn’t exist when older models were released. If you have more safety features on a car, it looks less risky to insurers, so they can charge less for the same policy.
- Better Crash Testing: Since crash testing technology has improved over the years, newer cars can receive a more effective assessment of their safety features. In other words, not only do newer cars have more safety bells and whistles, but they have a better ability than they did in the past to make sure those bells and whistles are truly effective.
- Availability of Parts: Older cars are often more difficult to find parts for, making repairs more expensive. Newer models with easily available replacement parts reduce the potential financial loss for a car insurance company in the event of an accident or breakdown. This is doubly true for luxury or antique cars, which have the most expensive, hard-to-find parts.
Still, the most important factors in your car insurance rates are your driving record and the type of car you purchase. A used sports car will cost more than a new but modest sedan, and someone with lots of moving violations will always pay more than someone with a clean record.
Either way, with an insurance agency like The Insurance Exchange in Kalispell, MT, affordable insurance is possible. Call for a free insurance quote at (406) 756-2500, or visit the website for information on their homeowner’s insurance and other types.