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New Car Insurance and You


Most Americans believe that a driver’s license is just about everything they need to get into their shiny new cars and drive off into the sunset. If car owners would be doing exactly that, then the roads would be full of car crash victims and mangled cars. The truth is, a driver’s license does not give a motorist permission to do whatever he or she wants without thinking of the consequences. Like it or not, cars are inherently dangerous. They are even more dangerous when inexperienced or irresponsible drivers are behind the wheel.

Car insurance offers motorists and passengers some protection against any financial burdens in the event of an accident. Without insurance, the pain of being in a car crash can resonate for months and even years in the form of repair bills and medical expenses. At present, 48 states require their citizens to have ample amount of insurance to cover any potential expenses. The first responsible step that any car owner must take is to purchase new car insurance before even taking a vehicle out for a spin.

Insurance companies often take into account several factors when computing for new car insurance premiums. Obviously, the primary consideration of providers would be the kind of car a policyholder drives. Insurance companies spend millions each year for research in order to find out which particular models and makes are more expensive to insure. Firms also rely heavily on studies and surveys conducted by independent researchers to assess the risks that come with particular car models.

Typically, expensive vehicles are more costly to insure. A new car insurance policy for a top of the line luxury vehicle can run into the thousands because they are simply more expensive to replace and repair. Because they require special treatment when undergoing repairs, the costs will be quite prohibitive.

The availability of parts and parts costs will also play a crucial role in determining new car insurance premiums. If certain car parts are more difficult to find, then the insurers are more likely to charge higher rates.

Having a car that is more difficult to repair can also mean higher premiums for car owners. Insurance firms have to factor in the labor costs of having a particular car model repaired. Some cars even require specialists that may be substantially more expensive to hire.

Having safety features and devices can mean lower premiums. These systems often provide added safety and lower potential costs for insurers to shoulder.