First and foremost, there's price. Obviously you can't buy a car you can't afford.
The mistake many people make when looking for a car is what that price or "cost" should include. If you are buying cash then this doesn't really apply to you but if you are getting finance for this vehicle to pay it off you can't just look at the monthly instalments. Eg you've worked out that you can afford R1500 per month, you can't look for a vehicle for that exact amount per month. You need to consider the other costs involved, such as a warranty ( some finance institutions insist on this) and of course and more importantly, insurance.
Finding cheap insurance can be made easier by choosing the right sort of car. When you know what their considerations are, you will be better equipped to find as cheap car that is also cheap to insure.
"Which vehicles are the cheapest to insure?
We would like to discuss a few of the factors that determine whether your vehicle will qualify for lower car insurance premiums. It is important to remember that the starting point for any such discussion would be to consider the purpose of having car insurance.
Car insurance is meant to provide cover for vehicle damage or vehicle loss. Therefore – the easier to replace and repair – the lowest the car insurance premium!
The biggest factor to affect your car insurance premium costs is the value of the car you would like to insure. The more expensive the car, the more expensive the car insurance premiums will be.
This is simple to understand – Should the car get stolen or damaged to a point beyond repair, the car insurance provider will be required to reimburse the insured for the value of the car.
In general, sports cars and other high-performance, flashy vehicles are classified as higher risks because they are common targets for thieves and vandals, and because statistically, the people who own them tend to drive more recklessly.
An aspect often overlooked by the car owner is the availability and cost of vehicle parts. The more expensive the parts and components needed to repair your vehicle the more expensive the car insurance premium.
The low profile car that is less expensive and easy to find also has more affordable parts needed for the repair and hence less expensive to insure.
Imported or Locally Manufactured
Be careful before buying an imported or exotic car – these cars are more costly to replace and as a result more expensive to insure. Check with your car insurance company beforehand if you plan to purchase an imported car – this might avoid nasty financial surprises!
With crime being such a threat to car ownership, the car insurance companies will regard vehicle safety features as very important. Most cars come with upgradeable options that cost additional money, but increase the car’s safety. A theft prevention security system and safety gear in your vehicle could reduce premiums. Modern safety measures such as DataDot technology as a security measure that could find favour with your insurer.
You can qualify for a discount on many policies if you have air bags, automatic seat belts, anti-lock brakes and daytime running lights. This could help prevent theft and accidents and they lower the potential damage in the event an accident occurs.
If expensive extras are built into the vehicle such as GPS and sound systems, this will also increase the insurance costs. Modifications and enhancements could not only create the impression of higher accident risk but will also increase your car insurance premium.
Remember that flashy sound systems or modifications might make your car more attractive to thieves – this could lead to a higher car insurance premium.
Even the colour of your car could have an effect on the car insurance premium. Insurers sometimes charge slightly higher premiums for darker colours (think black and navy blue) than for lighter cars (like white). [Some experts believe that darker colours can be more difficult to see in the dark or in bad light conditions, and are thus involved in more accidents.]
Car insurers will analyze historical car and crime statistics and seek to find which type of vehicle is more likely to be stolen or involved in an auto accident. These cars which are un-proportionately stolen or involved in accidents tend to cost much more to insure than average cars.
Getting cheaper car insurance requires a lot of thought and some research and planning. With the right mindset it is possible for the vehicle owner to get a cheaper car insurance premium!"
Info from http://carinsurance.arrivealive.co.za
Auto insurance is very necessary as to:-
ReplyDeleteSafeguard the investment you've made in your car,Pay for medical bills after an accident,Shield you from the costly damages of an accident-related lawsuit,Guard the valuable assets you've worked hard to collect (such as your home, retirement funds, stock or bond investments, etc.),Protect you from uninsured or under-insured motorists,Pay for damage repairs due to theft, vandalism, or natural disasters; and, of course and Strengthen your peace of mind, every time you take to the road.Chevrolet Captiva