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06/10/2008

Cut Car Insurance Costs with the Right Vehicle

Johnny is 21 years old and wants to go out and purchase his first ‘new' car. He has been driving hand me downs and used vehicles since he got his license when he was 16 years old. He has been saving for that perfect Johnny car and is now ready to run right out and get the car of his dreams....

Before he runs over to the dealers to make his purchase, Johnny should really stop and think about what he is buying. Things like the monthly payments, car maintenance, and the cost of gas should be some things that help to determine what vehicle he should buy. However, there is one more thing that Johnny really should consider before jumping into a brand new car... purchasing an ‘insurance friendly vehicle'.

What exactly is an ‘insurance friendly vehicle'? It is a vehicle that insurance companies consider to be low risk vehicles. By purchasing an "insurance friendly" vehicle the amount you pay for car insurance will drop substantially.

So just what makes a car "friendlier" in the eyes of your insurance company? There are several things that they consider; the make and model of your vehicle, the cost of your car, how easily your car is stolen, and how safe they are if an accident should occur.

Basically, you will want to purchase a vehicle that falls into the category of a station wagon, family sedan or a van. This means that you want to avoid those cute little high performance sports cars with large horsepower as well as luxury cars with all that upgraded technology. Not only will they cost you a fortune to purchase, but your car insurance will be sky high too. You will do well to also avoid things like SUV's and 4 wheel drive trucks. Not only do you run the chance of going off road and tearing up your vehicle, but if you are in an accident with a smaller vehicle, there is more likely to be considerably more damage to the other vehicle as well as its passengers.

Another type of vehicle that you will definitely want to avoid is any that are listed on the most stolen vehicle lists in your state. This is especially true if you live in a more suburban or city area where vehicles are stolen on a daily basis. If you are not sure which vehicles fall into this category in your state you can contact your insurance company for a list or go to https://www.nicb.org/HotWheels/index.html and click on your state for a listing. These are usually the vehicles that the insurance company will charge you more in order to insure.

Generally speaking whatever car you choose to purchase you will want to make sure that it does not cost too much. By this I mean making sure that should you get into an accident that it does not cost a lot to do the repairs. Many cars have certain safety features such as stronger bumpers and strategically placed headlights which not only will decrease the impact during a fender bender, but also are much less likely to be destroyed. You will also want to stick to purchasing a much less expensive vehicle when you do actually buy one. This is because it costs less to insure a cheaper model. This is usually because it is easier to find replacement parts and they generally cost the insurance companies less then a more expensive vehicle with all the bells and whistles.

So, before jumping into your next new two doors, high performance sports car, think about what it is going to cost you in insurance costs. Make your decision wisely about your next vehicle and it could save you a bundle, on both car payment and insurance costs.

Julianne Alzamora has 7 years of experience as a freelance writer. Her articles can be seen in several financial websites about investing, investment strategy, personal finance and topics on real estate.





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