Keep Insurance in Mind When Buying a Car

Most car buyers don't consider insurance cost as part of their buying decision. However, insurance rates can vary considerably between different makes and models. A car that seems like a bargain can be expensive to insure.

Car insurance rates are particularly important for young drivers. Rate variations are greatest for this category of drivers. Selecting the right make and model car can make the difference between affordability and impossibility.

Generally, vehicles with the lowest insurance premiums are those that are inexpensive to replace, inexpensive to repair, have excellent safety equipment, have good crash-test ratings, have lowest accident rates, and are not stolen often.

For example, looking at the Insurance Institute for Highway Safety's statistics for 2003-2005 makes and models, the Mitsubishi Lancer Evolution, a popular car among teenagers, has a much higher than average insurance loss rate in all measured categories: collision, injury, and theft. Therefore, insurance premiums for this vehicle will be very expensive, especially for teens.

By contrast, the Ford Crown Victoria, a favorite with older drivers, has very low loss statistics and will be relatively inexpensive to insure.

Therefore, before making a decision about buying a specific vehicle, check with your insurance company first to determine what you'll have to pay.