January 5th, 2015
If you already have several cars under your insurance policy, then you might think adding one more vehicle won't draw much attention from your insurer. However, with each new vehicle comes the need to revisit your insurance policy to make sure all of the details will cover your new car.
Similar to adding a new driver, adding a new car can have a big impact on your total auto insurance package because your provider will have to consider the potential new risks that you might be bringing into the fold. And for many cars, there could be an instance where your premiums may increase significantly.
Condition of the car
A large portion of your car insurance boils down to the shape your car is in. If you choose to buy a used car, then there will be some level of wear and tear. However, if one of your vehicles has a considerable amount of damage or is missing parts, then your driving ability will be hindered. This could possibly lead to wrecks, which is why insurance companies may charge you more if your car is in bad condition. If you're buying a brand-new car, then you can expect to not face this problem, but you could still be charged more because pricey cars cost more to fix in the event of an accident, which means you'll need more coverage.
If you're worried that your new car might raise your insurance rates, check into any safety discounts. Newer models typically come with enhanced add-ons like rearview cameras, anti-theft security systems and parking-assist software. These features may qualify you for a reduced insurance premium because your car is much safer than your previous vehicles and there is a limited chance that your new car will be stolen or damaged. Before purchasing a new car, speak with your insurer to see just how much you can save so that you make sure you're getting the best deal from both your provider and the automaker.
It's well-known that teenagers are risky drivers, and if you're buying a new car for your son or daughter, then your insurance company needs to know who the primary driver of the car will be. Younger drivers are accompanied with higher rates, so beware if you are thinking about adding a new car and a new driver onto your insurance plan because you can almost certainly expect to see a rate hike.
CoverHound can help with all insurance questions.