President’s Day is one of the biggest car-buying days of the year, but considers the cost of insurance when you are buying that new ride.  Most consumers will usually put forth a great deal of effort and time into searching out the best price for their new car. After all, the majority of America will have a budget for any large ticket purchase. One common mistake that consumers make when budgeting for a new car is only comparing what they can afford with the sticker price or loan payment for the car.

If cost is an issue, especially if choosing a car on the highest end of one’s budget, then it’s vital to factor in how much insurance will cost on the new car. It’s important to remember that car insurance prices will vary based on several car factors: sticker price, safety features, costs of repair, vehicle specific features, and high vs. low profile of vehicle.

Sticker Price

The greater the sticker price of a new or used car is, the more expensive it will be for an insurance company to replace it in the event of an accident. Therefore, the more expensive a car is, the more expensive the insurance will be for it. The added cost of insurance must be factored in to know if a car is truly affordable.

Safety Features

Safety features can have a big impact on car insurance. Features such as anti-lock brakes, airbags, automatic seatbelts, traction control, and airbags are statically proven to greatly reduce the number of accidents and /or injuries that occur while driving a car. The overall safety, class safety rating, and “crashworthiness” of a vehicle is also a factor. Certain states mandate that a discount be given for vehicles with certain safety features. So, be sure and check the safety rating for the car and applicable state law. Five stars indicate the highest safety rating and one star the lowest.

Repair Cost

The cost to repair the car is another factor that will influence insurance cost. The more expensive a car is, the more expensive the parts will be in the event it ever needs a replaced or repaired part. Then, there are certain brands of cars that usually require a dealership or specialty mechanic for even the simplest repair. These cars usually require brand-specific tools and diagnostic equipment. All of this will result in higher insurance rates.

Car Specific Features

There are certain car features that will impact insurance cost. Hard top vs. soft top, number of doors, and size of engine would be feature examples. As a general rule, domestic cars and minivans are some of the less expensive types of vehicles to insure.

Profile

Some cars are easier to steal and more valuable to car thieves than others. These “high profile” cars are considered magnets for auto theft, and therefore more expensive to insure. Crime databases and local insurance agents can apprise buyers of what cars are considered high profile for their area.

All of the above influences on car insurance can dramatically increase the bottom line cost of acquiring a new car, as they can alter car insurance from a few dollars to several hundred dollars. It’s vital to seek an insurance estimate before deciding if a car is a good deal.