Car driver -  Copyright Georgii Dolgykh |

What Car You Choose

We all know that getting a new car will affect your auto insurance premiums. But how?

It makes a big difference whether you choose an attractive sports car or a midsized family sedan. Different models attract different types of drivers. And the insurance company like to know everything there is to know about the person behind the wheel. Which one do you think they will consider the safest driver?

New or Old?

What about the difference between new and old car models? Will a new car always cost more to insure than an older one? Not necessarily. To start with, car insurance companies look at how often a car is stolen. The most stolen models are often those haven’t changed much during the last couple of years. Simply because there is a market for stealing those models, strip them and then sell off the parts. Meaning, some old, established, and popular models might be more expensive to insure.

Safety Features

Safety counts big. All insurance companies offer discounts for new and improved safety features. Look at a list of the top safety picks for 2012 at Insurance Institute for Highway Safety. Popular models like Chevrolet Malibu, Chevrolet Cruze, Ford Fusion, Honda Accord (4-doors), Hyundai Sonata, Kia Optima, Mazda 3, Toyota Camry, and Toyota Corolla are all on the list.

Overall crash-worthiness has improved rapidly over the years. This is important, because it means that the difference in safety – and in insurance premiums – can be big between new and old car models.

Repair Costs

The cost to repair and find replacement parts also plays a role when the company sets the premium. Usually, it is less expensive to repair popular models. Replacement parts are easy to find. For less popular models, finding suitable replacement parts can drive up the cost of repairs. Your insurance company knows that, and will decide on your premium accordingly.

The Formula

Remember, the formula to set an insurance premium is complex. Many factors are out of your control, but the make and model of your new car isn’t. If you narrowed our search down to a few models, don’t be afraid to ask your insurance company how they will affect your premiums. Maybe one of them will cost significantly less to insure than the others.

In a previous post we listed some other milestones that affect your auto insurance premiums: Milestones That Affect Your Car Insurance.