Buying car insurance for a new car can be a frightening proposition. If you’re in the market for a new car, you’re probably thrilled with the current incentives for purchasing right now – with many companies offering discounts and special financing rates. However, when budgeting for a new car, it’s important to consider the make and model of car. as the type of car you purchase can impact your insurance rates.
One of the factors that the car insurance companies will be taking into consideration is the cost of repair in the event of an accident, if you’re going to be purchasing collision insurance.
While the most common assumption would be the style of car for cost of collision, even amongst sports cars there can be differences of hundreds of dollars per year between insurance policies for different models. While this type of coverage may be optional, be sure to check your financing agreement before budgeting if you’re going to opt not to purchase collision; some financing agreements may require that you purchase this type of coverage.
Remember that while it may be tempting to rush into purchasing a new car based on the advertisement you see in the paper, be sure to speak with your insurance broker to get a quote before buying, to make the most informed decision.
