New vs Used – How It Can Affect Your Car Insurance Premium

When it comes to buying a car, many opt for something used, while others opt for something brand new out the box. Your decision can affect your car insurance premium and there are pros and cons for both sides. Let’s have a look at the advantages of both new and used cars.

Buying a new car:

Let’s face it, a new car is going to give you that shiny and new feeling, acting as a social status symbol for some. Although this is not important to everyone, the extra cost of a new car is worth it to many people. It just depends what you are hoping to gain out of your vehicle.

A new car will usually come with more modern features and perks, as opposed to a used car. From GPS to assisted parking, you will probably notice a lot more modern features which catch your attention. New cars also often come with some free roadside assistance.

If you buy a new car, the vehicle warranty will typically be fairly generous due to the fact that mechanical failure will most probably not be happening for the next few years. This will also have a positive impact on your car insurance premium.

Buying a used car:

Buying a used car will usually mean more stock availability, making it easier for you to find your ideal vehicle.

Buying a used car is certainly easier on your budget, allowing you to purchase a brand that you may not have thought would be financially viable. You don’t want your purchase to become a liability, you want it to be an investment.

Most new cars come with a vehicle warranty of at least 5 years and if they are sold before that warranty is up, the new owner typically gets the remainder.

How does this all affect my car insurance premium?

One may assume that purchasing a new car will mean a higher car insurance premium due to its higher market value and the cost of repairing it in the event of an accident. However, new car insurance can often be cheaper due to increased safety features.

To find out more about the various car insurance premium options, use LikeMoney to find out everything you need to know in order to make an informed decision.

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