Whether you are buying a new car or used car, the fact remains that before you get behind the wheel you will need to get auto insurance, which is a requirement of all motorists. It’s easy to get caught off guard about the costs to keep that car on the road, especially when it comes to buying and maintaining insurance.

Auto insurance rates can differ widely from one car to another, even between two vehicles that are direct competitors in the same class. Your choice can determine whether you end up spending too much, or too little for coverage. If you know the specific car you want to buy, then one phone call to your insurance agent will get you insurance estimates for the cost to cover that car with the same coverage you currently have.

Some vehicles cost more to insure

In general, SUVs and pickup trucks cost slightly less to insure than average, while sports cars and luxury cars will usually cost more than average. Family sedans have average insurance costs. However, if you aren’t sure what kind of car you want to buy, keep those factors in mind as you consider insurance costs on your next car.

So be prepared to pay higher car insurance estimates if your new car is going to be one of the more expensive body styles to insure or is a luxury brand. Also, keep in mind that if you are replacing your current car with a similar but newer car, car insurance rates will, in most cases, be higher.

Claims history often goes into determining rates

While these are general guidelines, there are always exceptions in every category. Because insurance rates are calculated partially on a car’s claims history, certain autos will cost more or less to insure than others of the same body style. This is because most companies look at its own claims data for each car and assigns each car a “loss number” that guides it in setting the rates for that particular vehicle.

Since some cars are more costly to repair or are more likely to be in a car accident or both, the loss numbers vary, even with similar types of cars. The Insurance Institute for Highway Safety offers data on insurance losses for various vehicle models. This historical data on losses affects car insurance premiums. Asking about any available discounts that may help to reduce your auto insurance rates. Speak to an agent that can help you save money on coverage whenever you are buying a new car.

Auto Insurance Decisions When Purchasing a New Car