Nothing would make a proud American smile than a newly purchased car. Next to a house, a vehicle is the most expensive investment than any American would acquire. But with the nation’s consumerism and credit card society, driving off to the sunset with a shiny new set of wheels is impossible.
A new car can mean many things for a car owner. For one, he or she will enjoy mobility. Bragging rights and sex appeal can even be included. And then of course there are the expenses. Car loans are not cheap. And so is car insurance. With all but two states requiring auto insurance, many car owners sometimes feel that having a vehicle has become more of a liability than a privilege.
Car owners have to contend with new car insurance and other expenses. Ideally, tough competition between insurance companies should keep costs down. This is not always the case, though. Providers have to consider many factors before revealing to car owners just how much they have to pay each year.
Perhaps one of the most important, if not the most important factor that affects insurance costs, is the new car itself. Vehicles that have powerful engines and classified as sports cars can mean higher premiums. Because these cars can outperform most of the regular vehicles on the road, they are more prone to car crashes. A higher possibility of accidents means higher new car insurance costs.
Sporty vehicles can be much more expensive to insure especially if the owners or drivers are younger. An inexperienced driver behind the wheel of a powerful car is a recipe for a potential disaster. Worse, a bad driving record would obviously point out to a higher risk for car crashes. Insurance providers are inherently allergic to lead-footed motorists driving sports cars.
Even if the new vehicle is a lumbering SUV, new car insurance can be more costly compared to smaller cars. Recent studies have revealed that certain large SUVs are prone to flipping over if drivers lose control while at moderate to high speeds. The car industry is rife with news about SUVs turning turtle because of sudden tugs at the wheel.
New car owners also have to realize their insurance costs will be greatly affected by accessories or features they install on their vehicles. Safety and security features like anti-lock brake systems and side airbags can help keep new car insurance costs down. Installing anti-theft systems and alarms should also make insurance more affordable for new car owners.