How New Car Insurance Rates Determined

How New Car Insurance Rates Determined?

New car insurance rates can vary dramatically. Have you ever wondered how to determine these rates? There are many factors you may want to consider before buying a car if you are worried about the price of insurance for new cars.

It’s the law that your vehicle is insured. For new car insurance, there are many factors that determine insurance premiums you pay. The type of car you drive is more important. How is your driving record and the number of choices on their insurance? A good way to get a better idea which broadens their premiums could be in is to understand what the car insurance group of your new car belongs. There are at least 20 different groups of auto insurance high performance cars in the top of the 20 groups.

These are the factors considered for new vehicles to define the group they belong to:

New car values

Price is important, especially for the cost of replacement and repair.

Damage and parts costs

The probability of damage and the cost of parts for repair. The lower cost, better opportunity for a group score lower.

Repair costs and times

The higher the repair time, the higher the cost. Increased cost equals higher rating group.

Performance Car

Statistics show that high acceleration and top speed cars therefore more frequent insurance claims.

Bodywork and accident repairs

How available is the basic framework of the car? This is important for the repair of certain damages.

Car Safety

Good safety features help reduce the risk that the vehicle is stolen or vandalized. This can help reduce the cost of insurance claims and thus put the car in a lower group.

After considering all the factors that influence the rate of insurance premiums for new cars, the best we can do is an online comparison shopping. Most major auto insurance companies will give you a free online quote with no obligation to purchase. This allows you to easily compare prices between different car insurance companies. Prices can vary by hundreds of dollars, so it’s worth the small effort it takes to do a little Internet surfing.

Digg This
Reddit This
Stumble Now!
Buzz This
Vote on DZone
Share on Facebook
Bookmark this on Delicious
Kick It on DotNetKicks.com
Shout it
Share on LinkedIn
Bookmark this on Technorati
Post on Twitter
Google Buzz (aka. Google Reader)

Leave a Reply