If you are in the market for a new vehicle, chances are high that you have already done the research on the type of automobile you want. The internet makes it easier than ever to learn the details of every make and model available. Through the click of a mouse, you can find out what others are saying about that sporty roadster you’ve been considering, or how dependable that particular style of truck really will be. You can learn about safety recalls, gas mileage, and even scout car lots in your area to find a specific vehicle in the exact color you have been wanting. Through the internet, you may even get pre-approved for financing, making the buying experience that much smoother.
But there is one bit of information that many consumers overlook when considering the purchase of a new vehicle, and that is, how much it will cost to insure a newly obtained set of wheels. An astute salesperson knows that because so many consumers finance their auto purchases, consumers are more concerned with the monthly payment, and less concerned about the total purchase price of the vehicle. This presents a particular danger to the finances of many Americans who are living paycheck to paycheck, especially if they forget to consider that the newly acquired auto will need to be insured, and that those insurance costs will further pinch an already tight monthly budget.
Occasionally, an inquisitive consumer with the forethought to do a bit of careful research, will dig a little deeper into the insurance world, and try to estimate what an average car insurance policy might cost, but unless working directly with an insurance agent, this is most difficult to estimate through simply doing online research. The cost of automobile insurance depends on a set of specific variables.
The specific make and model of vehicle you plan to purchase is a huge variable. Its age, its condition, and its market value will all play a part in how much it will cost to cover said vehicle.
The age and gender of any drivers covered under a specific policy will contribute to the cost of the coverage. Males tend to be more aggressive behind the wheel as young drivers, putting them into a higher risk category. The more risk involved, the more expensive the policy will be. The good news is that older gentlemen tend to be more responsible than their younger counterparts, therefore age and maturity can cause male consumers to see rates drop slightly over time.
Personal Accident History
In a perfect world, insurance coverage would be a non-issue. Unfortunately, that is not the world in which we live. Accidents happen to even the most responsible drivers. If an accident happens to be your fault, that accident may affect future insurance premiums. Fortunately, any premium spike that is directly caused by having an accident on your record, will mostly likely disappear over time.
Your Chosen Coverages
Finally, the specific types of coverage you choose will dramatically affect the cost of your premiums. Comprehensive coverage, collision coverage, personal injury protection, and bodily injury liability coverage are types of insurance coverages that you may or may not be required to carry. Required coverages vary from state to state. Failing to carry adequate coverage is usually not in your best interest, even when permitted by state requirements.
We understand that in tough financial times, when you are trying to make every dollar count, you don’t want to overpay for your auto insurance coverage. On the other hand, you don’t want to underinsure either. Our team at Oyer, Macoviak and Associates can help you determine what coverage is best for your situation, taking all these variables, and more, into consideration. Contact us to discuss your insurance needs today!
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.