If you're in the market for a new car, be sure to consider the cost of auto insurance when selecting a make and model. The monthly premiums could affect the overall cost of the vehicle considerably. Northwoods Insurance Agency in Crandon, WI, explains some of the factors you should consider when selecting a vehicle as well as some other information you'll need to know before driving your new vehicle off the lot.

What You Need to Know About Car Insurance When Buying a New Vehicle

1. The More Valuable the Car, the More You'll Pay for Car Insurance

When selecting a vehicle, don't stretch your budget to the limit to afford the car. Another cost of ownership is the expense of insuring it, and the more expensive the car, the higher the monthly premium. Not only is liability coverage required by law in Wisconsin, but if you finance the vehicle through a bank or dealership, your lender will require you insure it with comprehensive and collision coverage. Be sure to leave room in your new car budget for the cost of insuring it.

2. Safety Features Can Lower Your Premium Amount

You may qualify for a premium discount if the car you buy has one or more safety features. The most important of these include anti-lock brakes, front and side airbags, electronic stability control — which prevents skidding and rolling on slippery pavement or during hard turns — and lane departure or collision avoidance systems. The extra cost of these features could be more than offset by the peace of mind they offer and the reduced auto insurance payment they provide.

3. Your Current Auto Insurance Transfers Temporarily

If you have insurance on your current vehicle(s) and buy a new car, the policy typically covers your new purchase, but only temporarily. The same coverage on your present car—or the maximum coverage if you have more than one—may protect your car for a few days, but contact your insurance agent for specifics. You also need to contact your insurance agent and arrange for permanent coverage on the new vehicle.

Auto insurance is an important risk management tool, and it's particularly essential when you're planning to invest a lot of money in a new car. Northwoods Insurance Agency, a trusted independent car insurance broker in Forest County, has been serving the region for more than 30 years and offers invaluable guidance and advice. Visit their website to view a map and business hours, or call (715) 478-2215 to speak to an experienced insurance agent.