You and your neighbor have got the same mode of Volkswagen car. Talking about the features and the benefits, you get to know that you have also made a great choice just like him.

But next when you came across the cost of car insurance that he is paying, you started feeling uneasy somehow. Though both of you have the same model of car, still your neighbor has got his car insured at a cost much lower than yours. How is this possible?

Well, there can be a number of reasons to it. One of the major reasons can be that your neighbor has got a used car, while you have bought a new one.

Cost Of Car Insurance For Used Car Vs New Car

Though you and your neighbor may have the same car model, still there can be a lot of difference in the insurance cost if the car is used or new.

Theft Insurance: If your new car gets stolen, the insurance company may have to replace it with a new car or may have to pay you the cost of the new car. But in case of the used car, the insurance company will pay you a cost that can match up the old used car that you had. Hence, the insurer has to spend more if your new car is stolen. This increases the cost of insurance if you buy a new car.

Damage Insurance: You have met with an accident with your new car? When you visit the repair shop, the mechanic will charge you a good amount if you have a new car. This is not the same case for the used cars. The damage repair cost of the used cars is much lesser in compared to the new cars. This cost is also covered by the insurer. This means that the insurer has to pay you more for a new car repair in comparison to the repair of a used car. This also increases the cost of insurance of your new car.

The Type Of The Car

Not just the usage of the car, the cost of the insurance also depends on the type of the car that you are buying or have bought. The insurers have a list where they have researched about which type of cars face the maximum number of accidents or breakage.

For example, if you are buying a sports car, then the chances of accident is much higher than the average cars. Hence, the cost of insurance for a sports car will be much higher than an average car that you would buy. Not just sports car, also the insurers have a list of car models that are prone to maximum number of damages of breakage. If you are buying such a car, then also the cost of insurance will boost up.

The Risk Factors

You cannot do much if the cost of the insurance is increased due to the car factors. But there are also some other factors that add up to the reason of increasing insurance cost. These are some risk factors due to which you can get into an accident hence, the cost may go high.

Your Driving Skill: Every insurer, before granting insurance to you, checks upon your driving skills. The experts have a check of your control over the break, clutch and the way how you manage the steering. There are some insurers who check the driving skills manually, while there are many others who install a telematic device in your car to record the driving skills.

Your Lifestyle: Do you have a habit of rash driving or you often drink and drive? Then there are high chances that your cost of car insurance will go high. As learning and practicing driving skills well can lower down cost, similarly, correcting your lifestyle can also lower down the cost of insurance that you will be paying for your car.

Hence, there are a few of the factors that cannot be manipulated while there are a few of such factors that can be corrected. Depending upon these various factors, your insurance cost either may go high or may be quite less. Thus, it is quite important to research well before you buy a car and then o course, make a good research while you are choosing your insurance plan.

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