How Do New Cars Affect Auto Insurance?

One of the things that you should consider when you are purchasing a new car in Arvada, CO is how it will affect auto insurance rates.

The age of your car does affect premiums. As cars depreciate, they are worth less, and so in order for the insurance company to replace your car, they would pay less. With a new car, you may think that it costs more to insure. However, that may not necessarily be the case depending on what type of car you are purchasing. Depending on how many new safety features your car has, you may have a lower rate. Some safety features that can lower your rate include automatic seat belts, airbags, anti-lock brakes, daytime running lights, rearview cameras, blind spot detecting, and lane departure warning systems. If your new car has some of these features, make sure to speak with your agent at Alliance Insurance Services to see about available discounts.

One thing to consider with a new car is gap coverage. This does affect your premium, but it can save your from a financial headache if you get into an accident. Gap coverage helps you pay the difference in how much your car’s value is and how much you still owe on the loan.

New cars may be required to have comprehensive and collision coverage, especially if you have a loan or a lease.

Contact Alliance Insurance Services to get a quote on auto insurance. Getting a quote before you buy your new car in Arvada, CO can help you with your decision on which car to get. You will need insurance to drive your car off the lot, so getting your insurance agent involved in the process can help you choose the right insurance coverage for your new car.