While we all have our own preferences when shopping for cars, the fundamental theme is the same. We want a car that will give us the performance we need at a cost we can afford. It should have great gas mileage and other cool features. We don’t always think about whether we will be able to keep our car insurance affordable.
Perhaps it is time to do so.
For a moment, think about it. Let’s suppose you buy a car from a secondhand seller for $12,000 and your car insurance provider determines that it will cost you $125 per month to have the insurance coverage you need in order to prevent your lender taking back your car. This is $1,500 per year. The majority of people keep their car for 5 to 7 years. This means that by the time you trade in your car, you will have spent $7,500 to $10,000. This is more than half of the price you paid for the car.
Your insurance rates will have a lasting impact on your budget. It is worth doing your research and finding ways to lower your costs. You can upgrade your car’s security systems (car alarms aren’t that expensive to install). Consider using public transport instead of driving to work. You can reduce your coverage to the minimum.
You could also go car shopping with car insurance in your mind, and purchase a car that will keep your car insurance affordable no matter where you drive.
Highway Loss Data Institute is a specialist in compiling statistics about cars, trucks, and SUVs. They determine which cars have the most claims each year and are therefore more risky to insure. Your insurance provider will review their research and use the findings to estimate how much it will cost to insure your vehicle. Insurance that covers cars that are often stolen, vandalized, or in an accident will cost you more. While those that do not have to be involved in any accidents will help to keep your insurance affordable, they’ll charge you more.
What does the HLDI say about your car’s performance? To give you an idea of how to maintain high performance and cost-effectiveness, here’s a list the cheapest 2005-2007 models.
Four Door Mini Models
1) Accent
2) Kia Rio
Small Models
1) Toyota Prius
2) Honda Civic
3) Honda Civic Hybrid
4) Saturn ION
5) Neon Versa
6) Toyota Corolla
7) Nissan Versa Hatchback
Four Door Midsize Models
1) Saturn Aura
2) Hyundai Sonata
3) Volkswagon Passat
4) Subaru Legacy 4WD
5) Honda Accord
6) Honda Accord Hybrid
7) Mercury Milan
Mini Models
1) Mini Cooper Convertible
2) Toyota Yaris
Small Models
1) Volkswagen New Beetle Convertible
2) Volkswagen New Beetle
3) Chrysler PT Cruiser
4) Saturn ION Quad Coupe
5) Ford Focus
Two Door Midsize Models
1) Toyota Camry Solara Convertible
2) Toyota Camry Solara
3) Pontiac G6
4) Chevrolet Monte Carlo
Did your car make it on the list? Check the HLDI’s information pages if you have a newer model, or an SUV. And make sure you bring this list with you when you go to a used car lot. You’ll be a blessing to your bank account!