I Need an Auto Insurance Specialist
Reader’s Question:
Hi, I have a plan of buying a new car here in Manchester, New Hampshire and I wanna know what features in my new car will affect my insurance premiums. Is it true that if you buy a sports car or one which is likely to be stolen more would increase my premiums?
Carlo
Manchester, NH
Several things could actually affect the premiums you will be paying for your car insurance. Your car insurance premium would be slightly higher on that type of vehicle because insurance companies assign some amount of risk to the make and model of the car, but that would not be all. There are a lot of factors more important that the type of vehicle you are driving in determining the rate of the premium. These factors include the age and the gender of the driver, his/her driving history, density of vehicle in the area, overall market for insurance, etc.
Other factors that can affect your car insurance premium are how expensive it is to repair the vehicle and its safety equipment. Car insurance companies need to determine how much your car accessible to thieves is so the design of your car and the facilities are also important deciding factors for your car insurance premiums.
The ‘distance covered by cars’ is also an important factor towards deciding the premium rate because the more distance the car covers, more likely it is gonna get damaged by another car. As much importance as picking up the best car for you, you should also pick up the best car insurance. Get an online rate quote from a great insurance company in Manchester, New Hampshire available on this website and find out how much you could save on your car insurance.
Do You Need Gap Insurance When Buying A New Car?
Reader question:
If I have to get a new car as a result of a car insurance accident, does my gap new car insurance coverage take care of the down payment for my new vehicle?
Britney
No, it does not, Britney.
Unfortunately, there is a reason why you have to be way more careful when you own a new car, and that is because even with gap new car insurance you will be entirely responsible for getting yourself a new vehicle. The reason for this is that gap insurance has one purpose only, and that is to create a bridge between what your car is worth and what you owe. For example, the car that I am purchasing right now is worth fifteen thousand dollars, but I still owe eighteen thousand dollars on it. This is called an upside down loan, and it means that you owe more for a car than it is actually worth. This happens a lot with new cars, which are worth a lot straight off the assembly line but depreciate rapidly.
If I had gap insurance (and I do), then if I got into a car insurance accident I would not have to worry about continuing to pay on a car that I know longer have. My collision coverage will give me the fifteen thousand dollars that my car is worth, and then the gap coverage will provide the other three thousand. However, at the end of all this, while I would be safe from debt, I would still be stuck paying for a new car. I would no longer owe anything on my old car, but the gap insurance does not worry about that, it only worries about bridging the gap between what you owe and what your car insurance coverage is actually worth.
Cheers,
Fashun Guadarrama.
Can I Get a Car Insurance Discount For Buying a New Car?
Reader question:
Can you get new car insurance discounts for certain types of cars?
Jasmine
Sure you can.
If you have a brand new car that is getting a title for the very first time since it is fresh out of the factory, then there are a lot of car insurance companies who will provide you with a car insurance discount in this instance. That’s good news for anybody getting new cars, because the expenses are already huge. Newer cars have higher rates for car insurance premiums, and so this makes it easier to handle the higher threshold of coverage for a new vehicle.
Here are some types of cars that receive discounts for their class of cars.
- Cars that are economic. You can get a new car insurance discount for an economic car, especially on your collision coverage rate, because the parts are easier and cheaper to come by and the labor is cheaper for these kinds of cars. Another great thing about them is that they are often less expensive for you to maintain, so you win on all sides.
- Discount for utility vehicles. Several different car insurance companies offer car insurance discounts for certain types of pickup trucks. Call your car insurance company and ask if they do this, and for what kinds.
- Safety ratings. Cars go through safety crash tests that determine how they will hold up in the case of several different types of accidents, both concerning the car itself and the people inside of it. Cars who perform better get better safety ratings as well as better car insurance rates.
Cheers,
Fashun Guadarrama.
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