Car buying and its impact on insurance rates...

Car Buying and its impact on insurance rates.

If you are in the market to buy a car—either new or pre-owned—it is a good idea to research insurance rates before you reach a final decision. According to the Highway Loss Data Institute, vehicles are rated by their “crash test.” Crash tests are performed on most makes and models of cars, and evaluate how well a vehicle protects its occupants in a crash.

How are insurance premiums calculated?

Annually, the Insurance Institute for Highway Safety and its sister organization the Highway Loss Data Institute, analyze the actual insurance losses associated with the most popular vehicle makes and models. The rankings of these two organizations give consumers an opportunity to gauge how their vehicle choices will affect their auto premiums. Keep in mind that many makes and models popular with younger drivers may carry a higher premium. Annually, Insure.com prepares a list of the most- and least- expensive cars to insure.

Which vehicles are likely to have the lowest insurance premiums?

Today’s version of a family car—a large sedan, mid-size SUV or minivan. These cars tend to be driven by people who are less likely to speed or drive recklessly.

How to keep premiums down?

Bigger isn’t always better when it comes to lowering premiums. Some of the super-size models could actually increase the cost of your insurance. Why would a luxury SUV whose typical driver is both affluent and conservative be a risk? Two words: theft magnet. Many factors affect the rates for collision and comprehensive insurance and theft is one of them. Another factor is what happens when two cars collide. Larger vehicles are routinely linked to higher-dollar damage to other cars.

Other important factors to consider.

Talk to an insurance agent before you buy your next vehicle. Once you have narrowed your choices to two or three models, ask if any of the premiums differ significantly. Some models have higher theft or repair rates. A different engine may affect the cost of insurance. A convertible may cost more to insure than a hard top. When you speak with your Mercury agent, he or she will be able to advise you on the impact each vehicle will have on your payments.

The vehicle you choose is only part of the equation—you, your lifestyle and your driving record will also impact the cost of your insurance. And Mercury offers discounts for car safety features. Talk to an insurance agent today and ask for a free quote.