Do new cars cost more to insure?

Last updated: January 1

You may have heard newer cars cost more to insure. However, the cost of car insurance depends on many factors, including the make and model of the vehicle you're insuring and your driving record. These factors may influence the cost of insuring a new car.

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The new car's risk of being stolen

Typically, if a certain make and model is more likely to be stolen, car insurance companies may charge extra to accept that risk, says the Insurance Information Institute (III).

Each year, the National Insurance Crime Bureau releases a report on the 10 most stolen cars in the United States. Generally, these cars top of the list not because they're brand-new models. They are usually cars or trucks that haven't changed much from year to year in design and parts, making them attractive to car thieves looking to break down the vehicle and sell the parts.

Another factor that may come into play is where you live and where the car will be parked. Generally, if a new car is parked on the street in a big city, insurance companies may see that as riskier than a new car parked in a garage in a rural town, says the III.

The vehicle's safety record and safety features

Check the vehicle's safety rating from the Insurance Institute for Highway Safety. When shopping for a new car, consider its overall safety record in a collision, says the III.

In addition to the vehicle's overall safety record, the III says safety features also may play a role in the cost of insuring a new car.

You may be able to get a car insurance discount for safety features on your new vehicle, such as anti-theft devices or blind spot indicators. Check with your auto insurance company to see which discounts may apply.

The cost to repair or replace a damaged vehicle

The potential cost of repairing or replacing your car helps determine how much you'll pay for auto insurance, says the III.

For example, if you're buying an expensive sports car, the cost to repair that vehicle after an accident is likely more than repairing a standard four-door sedan. That's why the type of car you buy is a major factor when determining your car insurance premium.

Additional factors that may affect car insurance price

In addition to the type of car you drive and its safety features, here are some other factors that may affect the cost of your car insurance, according to the III:

  • Your driving record
  • How many miles you drive
  • Your age and gender
  • The coverages, limits and deductibles you choose on the new car

These are just a few of the factors that go into calculating your auto premium. Contact your insurance company if you have questions about how to save money on your car insurance.

New car insurance cost: What to look for when comparing auto insurance quotes

If you're shopping for car insurance on a new vehicle, it's a good idea to get quotes from at least three insurance companies, according to the III. Make sure you set the same coverages, limits and deductibles for each quote so you can do an accurate comparison.

Drivers in most states are required to have auto liability coverage on their car insurance policies. A standard car insurance policy may also include uninsured and underinsured motorist coverage, medical payments coverage, personal injury protection, collision coverage and comprehensive coverage, depending on where you live and your circumstances.

You may also want to consider additional coverage to help protect your investment in a brand-new vehicle.

Insurance discounts: What to ask for with a new car

As you gather car insurance quotes, consider asking if you qualify for any discounts. Most insurers offer discounts for bundling auto insurance with another policy like homeowners or renters insurance, says the III. You may also be eligible for discounts based on your new car's safety features or your driving history.