Buying a new car? 8 ways to attract a lower insurance premium

Published on: 18 November 2013

Find ways to get cheaper car insuranceWhether you are considering buying a new or used car, a great deal of thought and research goes into the process, before making the final decision. This comes as no surprise as there are many costs that come with owning a vehicle. These include monthly instalments, maintenance, petrol and insurance.

One way to reduce your monthly costs is by choosing a car that will attract a lower premium from your insurance company.

Keep reading to find out which factors will influence your car insurance premium.

  1. The value of the car  

    The biggest factor to affect your car insurance premium costs is the value of the car you would like to insure. Simply put, the more expensive the car – the more expensive the car insurance premiums will be. Remember the point of insurance cover is to repair or replace a lost or damaged vehicle. Therefore the easier it is to replace or repair, the lower the premiums.

    Another factor to consider is that high-end vehicles are also classified as higher risks because they are common targets for criminals.

  2. Vehicle parts

    One aspect that is often overlooked by car owners is the availability and cost of vehicle parts. The more expensive the parts and components needed to repair the vehicle, the more expensive the car insurance premium will be. A car with more affordable and available parts will be less expensive to insure.

  3. Imported and exotic cars

    Think carefully before buying imported or exotic cars.  Spare parts for these types of vehicles normally have to be imported and are therefore likely to be more expensive. These also tend to be more costly to replace and as a result more expensive to insure.

  4. High-performance

    Statistically speaking, people who own high horsepower cars are more likely to be driving faster and getting into more accidents.  In general, sports cars and other high-performance vehicles are also classified as higher risks because they are common targets for thieves and vandals.

  5. Added extras and enhancements

    Expensive add-ons such as sound systems, will also increase insurance costs. Remember that flashy sound systems or modifications might make your car more attractive to criminals, and this can lead to a higher car insurance premium.

  6. Colour

    The colour of your car may have an effect on your car premium.  Some research has concluded that at dawn or dusk darker colours are more likely to be involved in an accident than lighter colours. The reason being that darker colours can be more difficult to see in the dark or in bad light conditions, and are thus involved in more accidents. Insurers sometimes charge slightly higher premiums for darker colours (like black and navy blue) than for lighter cars (like white).

  7. Safety features

    Crime is always a threat to your car, and insurance companies look favourably on vehicle safety features. Theft prevention features such as an alarm or tracking device can reduce your premium.  

  8. High risk

    Car insurers analyse car and crime statistics to find out which type of vehicles are more likely to be stolen or involved accidents. Cars which are tend to be stolen or involved in accidents more than average will cost more to insure.

Useful tip: Companies such as MiWay Insurance allow you to complete multiple car insurance quotes online. This is a great way to find out how much you will pay on car insurance before your buy a new car.

If you are planning to buy a new car, remember to check with your insurance company first. Insurance premiums are determined by a number of factors but with the right car you can get a cheaper insurance premium.