How Your Job Affects Car Insurance

Are you worried your employment will have an effect on your car insurance? Find out here how to save money on car insurance.

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Lower Car Insurance on New Vehicles

If you are looking to purchase a new car, one cost you will want to keep in consideration of course will be the cost of your car insurance. Very likely when you purchase a new car you will not be allowed to drive it off the lot without valid and reliable car insurance. So while the process of purchasing a new vehicle may in and of itself be an arduous task, while you are doing so, you will also want to comparison shop for car insurance quotes for the type of car you are looking for. Knowing how the kind of car you purchase effects your car insurance will be a crucial first step in getting lower car insurance quotes when you are looking for a new vehicle. Are there ways to overcome this and still get the car you want? Of course! There’s always more ways to save on car insurance.

At the end of the day, insurance companies will give the lowest premiums to the drivers and the vehicles that carry the lowest risk. That means that the brand new sports car you may have been eyeing may not be the most practical choice if lower car insurance is a priority. So how do you know what kind of car will give you the lowest insurance rates?

It comes down to a banding system that car insurance companies use to rate cars. The banding system ranges between one and twenty, and the higher the number of banding for a vehicle, the more costly it will be to insure. Thus, if you are looking for lower insurance rates, you want to purchase a vehicle with a lower banding rating. The added advantage to this is that vehicles in the lower band ranges are also well known to have additional benefits such as lower consumption of fuel and lower costs to repair as well.

So how can you find out what banding the new car you want is in? The general rule of thumb is to start with engine size. The smaller the engine, the lower the band rating will be. Other features that will affect banding include the car’s weight, its top speed, the registered cost of spare parts, how many doors are on the car, whether it is manual or automatic transmission (manual will be more expensive to insure), and what safety features if any are on the car. If you don’t know the banding rating on your potential new vehicle, the dealership where you are considering your purchase will be able to help you out.

When you are purchasing a new care, of course there are many factors to consider, and cost of car insurance is certainly a priority. Before you sign on the dotted line, shop around to find out the car’s banding, and what your insurance costs will look like.