New Vehicle Insurance Durham North Carolina NC
Reader’s Question:
Is it true that the newer the vehicle you buy, the higher you car insurance premium will be? Shouldn’t it be the other way around? I’m gonna be purchasing a brand new SUV here in Durham, North Carolina, and I want to know if I will end up with higher car insurance bills.
Suzanne
Durham, NC
This is a very interesting question. Generally, it would cost a car insurance provider more to insurance towards repairing, replacing loss, or reimbursement damages caused to an expensive, brand-new or performance-type vehicle, as compared to an older car. However, as more and more of the latest car models coming out have state-of-the-art, built in safety mechanisms already installed, your car insurance provider may actually be able to provide you discounts on the merits of additional passenger safety which can help augment the costs of a higher car insurance premium.
You also have to factor the type of vehicle you have, it’s tag price, if there will be additional people you’ll have to add to your policy when they use the newer vehicle, the increased likelihood of theft, and any other statistical factors involved in determining the risk of insuring a newer car on your car insurance provider. This is the reason why you will see your car insurance premiums increase with a new vehicle.
You could still shave off some amount from the insurance bill if you agree to a higher deductible on your policy, if you, and the people using the new car enroll on defensive or safe driving lessons and by leveraging on the additional passenger safety mechanisms stated above. Talk with your car insurance agent about other promos available which may not be aware of as well.
Tags: automobile, car, car insurance discounts, car insurance rate
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