Tips For Insurance On New Cars : You’re obligated by legal requirements to have the proper insurance cover for your car if you plan to drive anywhere in Canada. This is a mandatory requirement in all territories and provinces if one wishes to operate his or her automobile legally. If a driver is discovered operating a motor vehicle without the minimum insurance cover in place, he or she may face undesirable consequences such as fines, license suspension, or having the automobile impounded. Ending up in either of these scenarios will result in significant increases in your insurance rate as you’d be considered a high risk driver.
How Rates are Determined
Because the insurance rates can depend on your location and other risk indicators, the insurance firms will contrast and compare every single aspect independently. One key issue that all insurance companies take into consideration is the applicant’s driving record. If one has a history of accidents, speeding tickets or other citations, he or she will most likely have to pay more for car insurance cover than someone with a clean driving record, or with a very minimal number of the aforementioned scenarios.
If you’ve installed a lot of very high tech gadgets on your vehicle, this will also influence your car insurance, whether for the better or for worse. For instance, if the car features air bags, a GPRS system–anti-theft device–additional mirrors, standard alarm system, or extra brake lights, it will lower the cost of the cover. In addition, younger people typically pay more for car insurance than mature individuals, and women are generally able to acquire lower rates than men. These rates are based on statistics that show younger, inexperienced drivers are more apt to become involved in accidents or acquire citations than mature drivers. Similarly, statistics show that men drive more aggressively than women and tend to speed more often, making them a higher risk, as well.
Insurance for New Vehicles
When it comes time to purchase a car, one must carefully consider the various pros and cons with regard to a used vehicle versus a new car that requires financing through a bank loan. The make, model, and year of a car are three details which have a notable impact on insurance rates. There are several reason for this, including the simple fact that if a brand new vehicle is involved in an accident, it will be more costly to repair than an older car. Similarly, a sports car or luxury car will cost more to repair than a standard model. In addition, newer cars are more often targeted for theft and are costly to replace if the insurance company must do so. Therefore, insurance agencies typically charge more to insure such vehicles than they charge to insure older cars.
Another fact to which some thought must be given is that cars which are brand new must usually be purchased through a finance company. The finance company in such a case will require that one have full cover on his or her automobile, meaning liability, collision, comprehensive, theft, vandalism, and cover for uninsured drivers. If one buys a used car that can be paid for with cash, he or she will have the option of purchasing only the minimum insurance required under Canadian law, which is usually basic liability. However, for a new car that must be financed, one must obtain the full cover as previously mentioned. With this in mind, it may be wise to consider if a new car is an absolute necessity, and if not, one may wish to purchase a used car for which only the minimum insurance cover is required. Read More http://www.carinsurancefox.com/tips-for-insurance-on-new-cars