For most people, one of the most significant considerations of purchasing a new car is the cost, and while many individuals factor in the down payment, monthly bills, and interest rates, other aspects affect the overall cost. One of the most significant, whether you are purchasing a new or used car, is how the purchase will impact your auto insurance. So before heading to the car dealership to test drive your dream car, understand how insurance providers set their rates.

How New Cars Affect Auto Insurance

1. Safety Rating

One of the most significant factors insurance providers look at when you purchase a new car is the safety rating. Vehicles that score higher are less likely to require a payout on their end, which makes your rates lower. Features such as numerous airbags, automatic seat belts, and traction control boost a vehicle’s overall safety rating.

2. Size of the Vehicle

Another factor providers look at is what size car you purchase. Since larger vehicles tend to be safer for the driver, insurance rates are typically lower when compared to a smaller, sportier option. However, bigger doesn’t always mean cheaper. Purchasing a new truck from a car dealer will cost more to insure than a similarly sized minivan. This is because the truck has a larger, more sophisticated engine that requires more time and money to repair.

3. Vehicle’s Age

When trying to decide between purchasing an older used car or a new car, understand that you will likely end up paying more to insure the newer option. However, it’s not because newer vehicles cost more to repair. When an older car gets into an accident, more often than not, it will be totaled and is replaced rather than being repaired. Since newer vehicles aren’t totaled as often, this results in higher collision coverage rates and a higher premium.

 

Once you understand how purchasing a new car is going to affect your insurance, head to Swant Graber Motors in Barron, WI. As one of the area’s premier new and used car dealerships for more than 75 years, they have a great selection of vehicles from some of the industry’s leading brands. With their onsite financing options and knowledgeable staff, they’ll make your car buying experience as stress-free as possible. Speak to a representative by calling (715) 537-5657 or browse their inventory online today.