WHY DOES NEW CAR INSURANCE PREMIUM COST MORE THAN OLD CAR?
Owning a four-wheeler is no less than a dream come true. But it doesn’t end here alone. Buying a car has many other aspects connected to it. Now you may ask what is the need of getting insurance for a vehicle or four-wheeler per se? But getting car insurance would surely work in your favor. Car insurance covers you from the costs that you may have to shell out from your pocket even without a mistake of yours. These costs include accidents, damage to the vehicle, etc. Suppose you are hit by another vehicle that leads to scratches in your car, insurance will help to pay for the damages caused to your car, if the other person has opted for insurance.
But again, there exists a huge difference in the overall cost of insurance premiums. And what does it depend on? To begin with, it primarily depends on the model. New cars would cost you more than that of old ones. Thus, its insurance cover would also be in the same bracket. The reason – new cars are more susceptible to getting stolen than old ones. And hence, a higher insurance rate.
Repairing a new car will surely cost you more. But this won’t be the same in the case of an old car. Hence, you will find your insurance premium for a new car to be on the higher side than the old one.
Every insurance company maintains a statistical chart that details the past experience of purchasing a particular type of car. Based on these they tend to offer customers suitable car insurance. This makes up to be the sole deciding factor.
So next time, you are going for buying car insurance, it is wise to contact your agent and get your facts cleared to avoid any confusion later.