Three Auto Insurance Considerations Before Buying Your Next Car
When shopping for your next car, you need to consider the cost of insurance. It is not something many people give consideration to, but without putting any thought into it, you can be saddled with large bills over the time you own the car. The following are three things that will influence the cost of your insurance premiums that relate to to type of car you purchase.
Paying cash or financing a car
When you pay cash, you have more options concerning how much insurance you want. Paying cash means that you own your car, and can buy as much or as little insurance as you choose. Of course, each state has minimum requirements for insurance, but these minimums are much less than lender will require if you choose to finance your purchase. When financing a car, your lender will want to protect the car's value as it is collateral for the loan. If you pay cash for a new car, you are likely to still want have full coverage, but for the purchase of a used car, the savings in reduced premiums for collision alone can be significant over the course of the period of vehicle ownership.
Cost of parts …show more content…
But this is this is a general rule of thumb, and you must be careful. There are some low priced cars that are designed to be as cheap as possible in the new car market. But in order to achieve this, there are parts used in the design that are not cheap to replace because they are not standard parts used on other cars. Small problems that happen because of a minor accident can become more expensive to repair than anticipated. If you have a high deductible, this type of repait may come out of your own
When shopping for your next car, you need to consider the cost of insurance. It is not something many people give consideration to, but without putting any thought into it, you can be saddled with large bills over the time you own the car. The following are three things that will influence the cost of your insurance premiums that relate to to type of car you purchase.
Paying cash or financing a car
When you pay cash, you have more options concerning how much insurance you want. Paying cash means that you own your car, and can buy as much or as little insurance as you choose. Of course, each state has minimum requirements for insurance, but these minimums are much less than lender will require if you choose to finance your purchase. When financing a car, your lender will want to protect the car's value as it is collateral for the loan. If you pay cash for a new car, you are likely to still want have full coverage, but for the purchase of a used car, the savings in reduced premiums for collision alone can be significant over the course of the period of vehicle ownership.
Cost of parts …show more content…
But this is this is a general rule of thumb, and you must be careful. There are some low priced cars that are designed to be as cheap as possible in the new car market. But in order to achieve this, there are parts used in the design that are not cheap to replace because they are not standard parts used on other cars. Small problems that happen because of a minor accident can become more expensive to repair than anticipated. If you have a high deductible, this type of repait may come out of your own