Buying a car based on cost of insurance?

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Discussion Overview

The discussion revolves around the considerations involved in selecting a car based on the cost of insurance. Participants explore how different car models can affect insurance rates and share strategies for finding affordable options. The conversation includes personal experiences, advice on comparing insurance rates, and factors influencing insurance costs.

Discussion Character

  • Exploratory
  • Technical explanation
  • Conceptual clarification
  • Debate/contested
  • Mathematical reasoning

Main Points Raised

  • Some participants note that the type of car is a significant factor in determining insurance costs, suggesting that potential buyers should consider insurance rates when selecting a vehicle.
  • One participant shares their experience of obtaining insurance quotes from their agent for specific car models they were interested in.
  • Another participant emphasizes the importance of shopping around for insurance, indicating that different companies may offer similar rates for the same car models.
  • There is a suggestion that insurance companies may have specialized rates for different demographics or types of vehicles, which could influence overall costs.
  • One participant mentions that insurance costs can vary significantly by state in the US, with higher rates in areas with more vehicles and claims.
  • A basic rule of thumb is presented: more expensive cars generally incur higher insurance costs, assuming all other factors are equal.
  • Participants recommend using online resources and comparison sites to gather information on insurance rates, although some express caution regarding the reliability of these sources.
  • One participant points out that financing a car may require specific insurance coverage, which can affect overall costs.
  • Links to external resources, such as consumer reports and insurance quote sites, are shared for further exploration.

Areas of Agreement / Disagreement

Participants generally agree that the type of car significantly impacts insurance costs and that shopping around for quotes is beneficial. However, there are multiple competing views regarding the reliability of online resources and the influence of demographic factors on insurance rates, leaving some aspects of the discussion unresolved.

Contextual Notes

Participants mention various factors that can influence insurance rates, such as driving history, location, and the specific requirements of different states in the US. There is also an acknowledgment of the limitations of online comparison tools and the potential for spam when using them.

Who May Find This Useful

This discussion may be useful for individuals considering purchasing a car who want to understand how insurance costs can vary based on vehicle choice and other factors. It may also benefit those looking for strategies to compare insurance rates effectively.

dipole
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I know there are a lot of parameters involved when insurance companies determine how much they'll charge you, and most are beyond my present control (Age, Driving History, Location etc...), but the most important parameter is the type of car you're looking to insure.

I'm hoping to buy a car, but one the factors involved in that decision is the price of the insurance. I'd like to be able to come up with a list of cars which would fall under the price range I'm looking to pay for insurance - natrually this would involve comparing rates between companies, as well as between cars. The list doesn't have to be complete, but should give me some options.

Any suggestions how to go about this?
 
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When I was looking for cars, my insurance agent gave me quotes for the models I was interested in. I called them in the morning and picked it up in the afternoon.
 
Good thinking to consider insurance costs before you decide on a car!

V50 has a good point about going to an agent first. But since you don't have an established company yet, you may have to try several companies.

Keep in mind the insurance companies likely use the same (or similar) data to set their insurance rates. So the cheapest models with Company A will likely be the cheapest models with Company B. By shopping around a bit you'll be killing two birds with one stone: finding the cheapest car to insure, and finding the cheapest place to buy your car insurance.

And there are online sites, too - no idea how reliable they are, but here's one:

http://www.fool.com/investing/gener...apest-cars-to-insure-youll-be-shocked-wh.aspx

Let us know what car you decide to buy!
 
I would look at what you need, than from that check insurance and if you can afford it go for it.
If you have a good driving record and not too young you should be no worries.

This is coming from Aus however.!
 
lisab said:
Keep in mind the insurance companies likely use the same (or similar) data to set their insurance rates. So the cheapest models with Company A will likely be the cheapest models with Company B. By shopping around a bit you'll be killing two birds with one stone: finding the cheapest car to insure, and finding the cheapest place to buy your car insurance.

That depends on the company. A company that "specializes" in insuring high performance cars, young drivers, old drivers, or whatever, will probably have better rates for those groups than a "generalist" company that makes most of its profit out of 40-somethings driving standard cars who renew automatically by direct debit and might not even bother to look at the charges (i.e. they don't spend hours of their time online to save a few dollars that they can afford anyway).

And there are online sites, too - no idea how reliable they are, but here's one:

I've no idea about US sites, but the UK ones are pretty reliable - except that a few of the big insurance companies don't participate at all.

Beware that if you use a comparison site, you can expect lots of emails trying to sell you every type of insurance, not just motor insurance.

If you are buying the car from a dealer, check out if they have any special insurance offers - though they might be an attempt to get rid of cars that nobody wants to buy!
 
A basic rule of thumb is, the more expensive the car, the more the insurance is going to cost, all other factors being equal.

In the US, different states require different types and amounts of coverage to cover uninsured motorists, medical expenses, etc. Car insurance is generally more expensive in states with a large number of cars on the road, like NY or CA, because there are a greater number of claims, more uninsured motorists, etc.

If you are financing a car purchase, one of the coverages you will have to carry as a condition of the loan is the 'comprehensive/collision' insurance, so that you can get your car repaired if it is damaged or totaled in an accident. The price of this coverage can be adjusted somewhat by the amount of deductible you choose, which is the amount you pay out of pocket to repair the car if you are in an accident. After your car is paid for, this coverage can be dropped, reducing the insurance bill quite significantly.
 
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