What are Insurance Cost Factors to Consider when Buying a New Car?

Before purchasing a new car, we always advise our Denver Area Insurance Clients to call us first.  Give us the year, make, model and VIN number of the car you are dreaming to own and we are happy to provide a quote of the cost to insure your dream ride.  It’s always best to get this cost ‘first’ and calculate it into your monthly payment to make sure you can afford this car.  Many clients are sadden to find out the true expense of owning this new car….if they call us ‘after’ the purchase.

The Insurance Institute for Highway Safety is the leading authority on crash tests and safety ratings.  Insurance carriers use the information they provide (as well as other sources)  to determine the rate to charge for your new Car. The cost to insure differs from car to car according to many factors.  But the safety features of the car, plays a major role in the cost to insure it.  How well it holds up in an accident, injury payouts to other vehicles and passengers riding in this vehicle, roof strength, crash avoidance systems are also major pricing components. 

CARFAX is an online Database that tracks the history of any vehicle according to the VIN number. We also suggest purchasing a subscription and check the history of the vehicles ownership, maintenance records, accident record, mileage rollback etc.  Your insurance rate might be higher if you purchase a make and model with a high accident rate or low threshold for damage.

The age  and ‘cost new’  of the car is also a factor in the cost to insure.  Newer more expensive cars cost the insurance carrier more to replace if damaged, so they charge you more for insurance.  Buying an older, less expensive car may save you money.  And if the car is worth less than around $3,000 or $4,000  you might want to consider saving money on Denver Area Car insurance by dropping Comprehensive and Collision coverage on the car and just carrying liability  and coverage for injuries in your car.  Comp and Collision coverage in the Denver area can cost up to 50% of the annual car insurance premium you will pay.

Note: Data and information provided on this site is for informational purposes only and should not be considered professional advice. Denver West Insurance Brokers makes no representations as to accuracy, or validity of any information on this site and will not be liable for any errors, omissions, losses, injuries, or damages arising from its display or use.