| Perhaps you have myriad good reasons for buying | | | | anti-theft features that redound to your benefit in |
| that a new car, especially if your reliable jalopy | | | | many ways. Anti-lock brakes, parking sensors, air bags, |
| outlasted its usefulness. However, before you become | | | | electronic ignition and alarms are some of the features |
| caught up in visualizing your new ride, consider the | | | | on your new car that can reduce the risk of insuring |
| significant impact your new car purchase will have on | | | | your vehicle. Once your new car has multiple safety |
| your car insurance. It does not just affect your | | | | and anti-theft features (or even recovery systems), |
| premium but other aspects of your car insurance- like | | | | you can access such discounts, which are 10%-20% |
| the types of coverage you buy and additional features | | | | on average. |
| you need, like new car insurance. | | | | 3. Innovative features on new vehicles |
| When you purchase a new car, several factors that | | | | New cars usually have new features that can |
| determine your car insurance premium - and the | | | | increase the functionality and overall value of the |
| coverage you have - remain unchanged. These include | | | | vehicle. However, faster acceleration and the latest |
| your driving record, claims history and the minimum | | | | stereo system are some features that may boost |
| coverage required - factors that are independent of | | | | your insurance rate - not just your car's value. New |
| the vehicle you drive. However, your car insurance | | | | features that increase the likelihood of theft, accident |
| portfolio will be affected in the following ways when | | | | or the potential claim amount will increase the |
| you buy a new car. | | | | insurance rate as well. |
| 1. If your new car is also a new model | | | | 4. Inherent features of the new car |
| When your brand-new ride is also a new model, the | | | | Insurers assess attributes of your new vehicle to |
| insurer would likely base the auto insurance rate for | | | | determine the level of risk. The type of car, its size and |
| the vehicle primarily on price. Other factors such as | | | | color are just a few of the specific criteria that insurers |
| claims history and theft-risk, based on relevant | | | | check. They use these to place your car in a certain |
| statistics, usually affect the premium as well. However, | | | | risk category. For example, sports cars exist in a |
| a new model does not have such information available. | | | | higher risk category than station wagons, suggesting |
| Only after that model develops its own history would | | | | that a change in the type of car, or even your |
| the insurer increase or reduce the insurance rate. If | | | | preferred color when you buy insurance, affects your |
| you aren't purchasing a new model, insurers use a | | | | premium. |
| combination of factors to determine the risk of insuring | | | | How buying a new car affects your car insurance is |
| your new car. Read about which cars have a better | | | | not only a matter of the insurance premium. You might |
| impact on your car insurance by clicking here. | | | | have to modify or change your entire auto insurance |
| 2. Applicable discounts | | | | portfolio because of your new acquisition. Knowledge |
| Insurers normally apply discounts to auto insurance | | | | of how your purchase affects your car insurance can |
| policies based on anti-theft devices or safety features | | | | even steer you towards making a prudent purchase in |
| included. New cars normally have multiple safety and | | | | the first place. |