Have you been searching for a new car? If so, you've probably created a list of features that you would like your new automobile to have. For example, you probably know what type of engine you'd like, the vehicle type, and you may even have a color preference. But have you been considering how these different features might impact your insurance rates? In some cases, the type of feature you choose in a vehicle could raise your rates significantly. So if a car you like comes with a feature you really don't need or even want, it may be best to look for a different automobile.
Four-wheel-drive (4WD) Versus Two-wheel-drive (2WD)
After a long search, you've finally decided on a great sport utility vehicle (SUV) or truck that comes in both 4WD and 2WD models. You're torn because there's something sexy about owning a rugged 4WD and—in your mind—there's always a possibility that one day you might actually take your vehicle on an off-road excursion. But did you know that, according to Kelley Blue Book, owning a 4WD is likely to raise your insurance rates? In addition, a 4WD vehicle weighs more, so it will also cost you a little more in gas than a 2WD. So if chances are slim that you will actually take your vehicle off-roading or if you live in an area that rarely gets snow, it may be a smarter financial option to purchase the 2WD vehicle.
New Car or Used
Many people assume that insurance for a brand-new car will automatically be more than for an older used car. But that is not necessarily true. According to DMV.org, a newer car might cost more, but it will also have new safety features that can bring down your insurance rates. For example, many new cars today now feature rear back-up cameras that can significantly reduce your risk of striking something—or even someone—when your car is in reverse. And if an older car is damaged in a collision, it may be more difficult—and thus more expensive—to find parts in order to fix it.
Four- or Six- or Eight-Cylinders
It's not surprising that small, sporty cars typically cost more to insure. For one thing, Bankrate says they are often driven in an aggressive manner that could result in an accident. And small cars and their passengers tend to fare poorly when involved in collisions with larger vehicles. But did you know that you might be charged more for your insurance if you choose a six- or an eight-cylinder engine over a four-cylinder. According to Kiplinger, it's true. So if you don't really care about the size of your engine, you may want to choose the one with less horsepower in order to save on your insurance rates.
Red, Yellow, or Other Color Car
You've probably heard that you shouldn't purchase a red or a yellow car because these flashy colors will cause your insurance rates to rise. Or you might have heard that buying a yellow car will have a positive effect on your rates because studies have shown that they are more visible and less likely to get into an accident. The truth? The color of your car has no effect on your insurance rates. None, zilch, zippo. So if you want the red car, buy the red car.
If you are like many other people, you will probably take the time to haggle for a better price when purchasing your new car. But remember that it is equally important to research the different features of an automobile and the effect they may have on the price of your auto insurance. Otherwise, you could end up paying extra each month on your insurance for features that you didn't even need or want.
After I graduated college, I started to feel like an adult. I started teaching at a school. I also bought a car. And I became the owner of several insurance policies. I obtained a comprehensive insurance policy for my car. I also secured my first life insurance policy at this time. I didn’t want my family members to be burdened with funeral costs if I suddenly passed away. A few years after graduating college, I became a homeowner. After this joyous occasion, I invested in a homeowners insurance policy. On this blog, I hope you will discover the most common types of insurance people purchase.