Most people wonder does car insurance go up with a new car. We must tell you that it’s true. Car insurance premiums often go up when you purchase a new vehicle. Several factors contribute to this increase in insurance costs.
Firstly, new cars typically have a higher market value than older vehicles. It means that in the event of an accident or total loss, the insurance company may need to pay a larger sum to replace or repair the new vehicle. Consequently, they charge higher premiums to cover this potential cost.
Secondly, new cars often come equipped with advanced safety features and technology, which can be expensive to repair or replace. While these features enhance safety, they can also increase the cost of insurance since repairing or replacing such technology can be costly.
Additionally, a brand-new car will be at a higher risk of theft than an older vehicle. It increases the risk of theft, results in higher premiums and increases the insurer’s liability at the time of claim settlement. Therefore, the insurance company factors in the elevated risk and raises the premium for new car insurance policies.
Lastly, new car owners might opt for comprehensive coverage to protect their substantial investment fully. Comprehensive coverage, including protection against theft and damage unrelated to accidents, typically comes with a higher premium.
Steps to buy car insurance for a new car
Follow these steps to obtain car insurance for your brand-new car.
Gather Vehicle Information
Collect details about your new car, including make, model, year and vehicle identification number (VIN).