So you have finally decided that it’s time to get a new car. There truly is so much to consider when shopping around for the right vehicle. And if you’re like most of us, you have a budget to think about. One of the main factors that will be on your mind is the car’s monthly payment.

You’re looking for a vehicle in your price range, and shopping around for that low interest loan. Right? How much of that budget are you planning to spend to bring the right vehicle home? Well, before you make any decision, be sure to take into account your possible car insurance costs. Finding the right auto insurance policy to match your new purchase will save you plenty of cash and heartache in the long-run. So, what should you consider before making this decision?

Car insurance premiums are heavily based on

  • the car’s sticker price,
  • the cost to repair it,
  • the chances of it being stolen
  • and its overall safety record.

Yes, the automobile’s sticker price will directly affect what your car insurance rate will be. If you end up in an accident, it will most likely cost more to repair a new car than an older one. The cost of repairs can greatly increase if the vehicle is an import. Many luxury cars can only be repaired or serviced by dealerships, and the parts most often need to be ordered from overseas factories. Even domestic luxury cars will usually cost more to repair than moderately priced vehicles.

Ironically, one of the main reasons why you have car insurance is also one of the factors that can have the biggest effect on your insurance rates. New cars are more valuable than used ones so they are more likely to be stolen and are considered a higher risk. Auto theft is the most commonly committed crime in the U.S. However, it’s not just expensive or luxury cars that are stolen. In fact, sometimes the entire car isn’t stolen at all – just certain parts are taken. Most of the time, the parts are more valuable than the whole car. It’s more difficult to trace parts than identify a stolen car. Avoid any car that has a high theft rate and/or a bad crash rating no matter how amazing you feel driving it. Many insurers also offer discounts for features that reduce the risk of injuries or theft like daytime running lights and anti-theft devices.

You probably weren’t thinking about how much your auto insurance policy would affect your decision when purchasing a new car. But aren’t you glad to know what to look for? Good luck with finding the right new vehicle for your car insurance.