Is It True the New Cars Come with Higher Insurance Premiums?

Many people looking for new cars in Thousand Oaks worry that they will have to pay far more money in insurance premiums. A big misconception is that new cars automatically demand a higher premium, just because they are new. That is not exactly true, and it should not represent a factor that deters you from purchasing the new car that you really want.

Newness Does Not Raise the Insurance Premium

The truth is, how new a car is does not really factor into the cost of insurance. In fact, insurance companies base their rates on other criteria.  While these criteria can vary between companies, they generally have to do with the inherent risk of the car, and how desirable people find the car.

Risky cars

Some cars just come with more risk than others. For example, a sports car from any year will come with more risk than a brand-new sedan. A car that has features that purposefully allow it to go very fast represents a risk that a moderately designed newer car just does not.

Additionally, cars that lack safety features are also considered high risk by insurance companies. So, a brand new base model may have a higher premium than a brand new model with added safety and security features.

Desirable cars

People automatically assume brand new or luxury cars fall into the category of “desirable.” Most car thieves are not on the hunt for brand new cars. When you stop to think about it, you will realize that newer cars come with newer security features.

Older cars have old exploits that thieves know about and can make easy use of. Newer cars represent a far larger risk as they typically have security measures that defeat older exploits. Insurance companies know there are far fewer thieves out there targeting brand new model vehicles. In fact, the most stolen cars in the country are 90s coupes and sedans.

Don’t Confuse Coverage Options for New Cars

If you borrow to purchase a new car, the lender may require you to carry extra coverage. Sometimes people confuse the requirement for full coverage with having a higher premium. One thing to keep in mind is that even if you must pay for more coverage, you can still do a few things to lower how much you pay for insurance.

How to pay less for insurance

New cars do not have to come with costly insurance no matter what type of car you choose.

  • Always look at multiple insurance quotes
  • Ask insurers what kind of discounts they offer
  • Keep a good driving record (or improve a bad one)
  • Choose cars with an abundance of safety and security features

So, it is okay if you do have your eyes set on that sports coupe designed for ridiculous speeds. You still have some options to help you lower your insurance premium. Do not let the idea of costly insurance scare you away from considering new cars in Thousand Oaks.

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