Choosing A Car That Won’t Cost A Fortune In Premiums

Owning and operating a car is expensive – the AAA places it at $7,834 a year on average. Gas prices are outrageous. A trip to the mechanic can cost more than your mortgage payment.

And you have to pay for car insurance. It isn’t just a nice thing to have in case of an accident. It’s required by law in 47 states.

But you can save money on your auto premiums — by making a smart car choice.

Four Things To Look For When Buying A Car

• How Does It Look? Of course you want to look good in your car. Maybe you’ve always dreamed of owning that bright red Mustang.

You may end up paying a lot for insurance. Fancy cars with fine detailing are very expensive to repair. So insurance companies charge a higher premium to cover them. Sports cars, collector’s cars, and other specialty cars will cost you more to insure than a station wagon.

• Is It Likely To Be Stolen? The insurance industry keeps numbers on which models are most likely to be stolen. If you drive one of these cars, your insurance is going to cost you extra. This is a concern with sports cars and other expensive vehicles.

The car that tops the most-frequently-stolen list? The Honda Civic. Not surprisingly, it’s in the top 5 most expensive cars to insure.

• What Does It Come With? You can get a lower premium depending on the options your car comes with. Car alarms and other anti-theft devices will lower your insurance costs. So will anti-lock brakes, and anything else that makes an accident less likely.

When you’re seriously thinking of buying a particular car, find out how much more it would cost to get it with the “extras.” Remember, saving money on premiums isn’t the only reason to consider getting additional safety features. No matter how great a driver you are, accidents happen.

• Is It A Safe Car? Vehicles are rated according to their “crashworthiness.” The more crashworthy a car is, the safer it is. A crashworthy vehicle will also get you cheaper premiums.

If you want to learn about which cars rank the best in safety tests, visit the Insurance Institute For Highway Safety at http://www.iihs.org/

Which Cars Cost The Most To Insure? Which Cost The Least?

According to Reuters News Service, these are the top 5 most expensive cars to insure in 2006:

1. Ford F-Series
2. Dodge Ram Pickup
3. Ford Explorer
4. Honda Civic
5. Chevrolet Silverado-C/K Pickup

These are the top 5 least expensive cars to insure in 2006:

1. Chrysler Town & Country
2. Chevrolet Cobalt
3. Dodge Caravan
4. Chevrolet Impala
5. Ford Taurus

Don’t see a car on that list that strikes you? Don’t worry. There are many things that go into determining auto premiums — like your driving record, for instance. Talk to an insurance agent to find out what options you have, and how you can get the best rate.