An important part of the cost of owning a car is auto insurance. When shopping for a used car, consider the cost of insurance, as well as other factors. Is it cheaper to buy a used car than a new one?
It isn’t cheap to buy a car. You have to include registration fees, taxes, and monthly finance payments. The investment will grow even more if the cost of insurance is taken into account.
According to Bankrate, the average cost of insurance has gone up over the last few years. Minimum coverage insurance used to cost $545 a year.
The cost of car insurance is influenced by many factors. The car’s age is important.
An insurer won’t have to pay out as much in the event of a total loss if an older car is insured.
Whether a car is new or used is not taken into account by car insurance companies. The age of the car is one of the things that comes with aging.
Most younger cars need full coverage if they are financed or leased. The cost of full coverage insurance is higher. It’s possible that you don’t have to carry comprehensive or collision coverage on an older car.
Younger cars have more safety features than older ones. These features can reduce your insurance premiums. Younger cars have cheaper and easier to find parts that make them cheaper to insure.
- 2022 Chevrolet Spark (MSRP: $13,600). The Chevy Spark is one of the cheapest new cars you can buy. At this price, you could add optional features.
- 2022 Toyota Prius Prime (MSRP: $28,220). The Prius Prime is a plug-in hybrid, which will benefit you when it comes to insurance.
- 2022 Kia Rio (MSRP: $16,250). If you like tech in your car, the affordable Rio comes with a surprising number of tech features, including an 8.0-inch touchscreen display, Bluetooth, Android Auto, and Apple CarPlay.
- 2022 Mitsubishi Mirage (MSRP: $14,645). You can get the Mirage in a sedan or hatchback body style. It also boasts advanced driver-assistance systems like forward collision warning, lane departure warning, and automatic high beams.
- 2022 Honda Accord (MSRP: $26,120). The Accord is well known for its reliability and safety. And the 2022 model comes with the Honda Sensing suite of driver assists.
If you can’t afford to pay for a full six or 12 months of auto insurance up front, and want to get cheap car insurance with no down payment, here’s what you should know. https://t.co/iAHfX2x1dy
— Forbes Advisor (@ForbesAdvisor) September 7, 2022
There are a few reasons your auto insurance could go up.
Most sectors of the economy feel the effects of inflation. The cost of car parts is much higher than the average increase. It will be more expensive for your insurance company to repair your car because of the supply chain issues. It takes longer for your car to be repaired and you have to pay more for it.
In the next two years, people will drive more. The wear-and-tear on cars is caused by more people on the road. These crashes are more severe and cause more deaths. Increased risks cause your car insurance to be more expensive.
Is it possible to get cheaper insurance if you own a car.