Buying a New Car for Christmas? Read this first!

BUYING A NEW CAR- WHAT WILL THAT DO TO YOUR INSURANCE RATES?

It’s always exciting to get a new car! If you are in the market to buy a car—either new or pre-owned—it is a good idea to research insurance rates before you reach a final decision. Do your research online before setting foot on the dealer’s lot.  Read what our friends at Mercury Insurance have to say:

“According to the Highway Loss Data Institute, vehicles are rated by their “crash test.” Crash tests are performed on most makes and models of cars, and evaluate how well a vehicle protects its occupants in a crash.

Annually, the Insurance Institute for Highway Safety and its sister organization the Highway Loss Data Institute, analyze the actual insurance losses associated with the most popular vehicle makes and models. The rankings of these two organizations give consumers an opportunity to gauge how their vehicle choices will affect their auto premiums. Keep in mind that many makes and models popular with younger drivers may carry a higher premium. Annually, Insure.com prepares a list of the most- and least- expensive cars to insure.

Which vehicles are likely to have the lowest insurance premiums? Today’s version of a family car—a large sedan, mid-size SUV or minivan. These cars tend to be driven by people who are less likely to speed or drive recklessly.

How to keep premiums down? Bigger isn’t always better when it comes to lowering premiums. Some of the super-size models could actually increase the cost of your insurance. Why would a luxury SUV whose typical driver is both affluent and conservative be a risk? Two words: theft magnet. Many factors affect the rates for collision and comprehensive insurance—and theft is one of them. Another factor is what happens when two cars collide. Larger vehicles are routinely linked to higher-dollar damage to other cars.”

• Contact us here at Perimeter Insurance Agency once you have narrowed your choices to two or three models, ask if any of the premiums differ significantly. Some models have higher theft or repair rates. A different engine may affect the cost of insurance. A convertible costs may cost more to insure than a hard top. When you contact us we can get quotes and answer any questions on what impact each vehicle will have on your payments.
• New or used? What should you purchase? New cars may have a dealer maintenance plan and more peace of mind but generally cost more. Newer vehicles depreciate so some people prefer to shop the used car market. Now it is even easier with “certified pre-owned” vehicles and the ability to check the used vehicle’s history through Car Fax reports.
• Who will drive the new vehicle? It is tempting to want to purchase the newest model vehicle for your teen driver but ask us first how that can impact your rate. If you finance your teen’s vehicle there may be restrictions by the lender on how high your deductible can be.

The vehicle you choose is only part of the equation—you, your lifestyle and your driving record will also impact the cost of your insurance. At Perimeter Insurance we can advise you which companies offer discounts for car safety features and check to see what other discounts may apply. Doing your homework on car buying will make your buying experience more pleasant and reduce the temptation to give in to pressure from car sales staff. Want to buy a new car for Christmas?  Contact us at Perimeter Insurance at 405-778-8880 or email us at perimeterins@coxinet.net. Merry Christmas and get to researching!!