Estimating Auto Insurance Before You Buy

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Your monthly auto loan payment is far from the only cost associated with buying a new or used vehicle. In addition to your down payment, maintenance costs, and more, you’re also required to insure your vehicle, which protects your investment against any accidents. It is imperative to factor in the cost of auto insurance when car shopping to ensure you aren’t blindsided by the additional expense.

There are several variables that factor into the initial calculations of how much you could have to pay for car insurance:

Vehicle Model

Rates for each type of vehicle are determined separately according to theft and crash statistics. Insurance providers analyze industry safety ratings and reports to determine which models are frequently stolen or involved in accidents, so if the vehicle you are considering tends to be crashed or stolen often, that can increase insurance rates.

Additionally, a flashy foreign luxury sports car will be significantly more expensive to insure than a simple two-door sedan. Luxury or foreign-made vehicles carry pricier policies than popular American-made vehicles. This is because replacement parts are typically harder to come by for more high-end models, and many body and repair shops may be less willing to perform work on such expensive cars.


Generally speaking, the more expensive the retail price of a car is, the more expensive it will be to insure. If the insurance policy you purchase includes comprehensive and collision protection, the insurance company will then be required to cover the cost of the vehicle’s market value if it gets stolen or is severely wrecked past the point of repair. So the more you pay for the car, the more your insurance company will have to pay in the event of significant damage or theft, thus the more expensive your insurance policy will be.


Higher-end vehicle models tend to use specialized materials in their parts, which can be expensive to repair or replace if they get damaged. This can drive up the cost of claims, depending on how hard the parts are to come by and how substantial the damage is.


Vehicles that are highly ranked in terms of protection and safety ratings will see much lower insurance costs than their less strongly-rated counterparts. Fewer accidents resulting in injuries to drivers and their passengers means there will be fewer insurance claims made. Saving your insurance company money means that you save money as well.

The specific safety features of the vehicles you are considering will also affect the cost of your insurance policy. The more safety features a car is equipped with, the more trustworthy a car appears to the insurance company, thus they will view it as less of a liability and not charge as much to insure it as they would a much older car with fewer safety features.

Taking all of these factors into consideration will help you start to develop a general picture of what your insurance may look like when purchasing a new vehicle. Once you start thinking about buying, you’ll want to reach out to receive initial quotes for the models you are considering. Here are some steps to help you get estimates:

Make Your Choice

Most people have several options in the running when searching for a new car. It can be difficult to determine what the best selection is for you and your specific needs, so you will likely need to do some research, as well as visiting dealerships to see the vehicles for yourself and perform test drives. Once you narrow down your selections to your top few choices, you can begin to reach out for estimates.

Determine Your Coverage Needs

Deciding how much coverage you need is a crucial step in the insurance process. Unsurprisingly, the more coverage you feel is necessary for your car, the more you will end up paying for insurance. This will require some research as well for you to determine the amount of coverage that best suits your individual needs, depending on your driving behaviors and the level of protection you desire.

Get Quotes

Once you’ve determined the vehicle models you’re most interested in and how much coverage is right for you, contact different insurance providers in your area to receive a quote. You’ll want to inquire about the same amount of coverage and for the same vehicle models, so that you’re able to make an even comparison on the estimates you receive from each company. Ask about any potential discounts the insurance company offers, so you can weigh that into your decision when you’re ready.

Getting estimates for how much you’ll pay for car insurance coverage before you buy is an important step in the car buying process. Armed with this knowledge, you can feel more comfortable and confident when making your final decision and making an offer on the vehicle of your choice.

If you are ready to purchase a new or used vehicle, let us help. Our friendly staff can walk you through the process and help prepare you every step of the way. You can apply for a loan online, give us a call, or stop by any of our branch locations to speak to a representative about your financing options.

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