Purchasing a car can be exciting, especially after you have invested time and effort in researching cars and taking test drives. Before you apply for your loan and sign on the dotted line, you should take a look at the cost of insuring your new set of wheels. Knowing how much you can afford to spend on insurance will help you make a smart decision when choosing a car.
Depending on your budget, you may want to set your sights on a car that has a less expensive insurance rate. Some aspects determining the cost of car insurance include,
1.) Age of the Car – The age of your car can lower your insurance costs up to a point. Some insurers are reluctant to insure older vehicles with poor safety ratings. Also, if the car you want to insure is so old it is considered a classic, you are in another auto insurance category.
2.) The Size of the Car – You may dream of driving down the road in an impressively equipped Landcruiser, but you will have an equally impressive insurance bill along for the ride. Many well-equipped compact and subcompact cars will take less of your paycheck to cover. If you are budget conscious, set your sights on a reasonably sized vehicle for your lifestyle.
3.) The Price of the Car – Just as buying a king-sized vehicle will increase your insurance rates, buying a top tier luxury car will give you much higher premiums.
When you start the decision-making process, it is often helpful to consult one of the many lists that rank the least expensive cars to insure.
According to an analysis published by Youi Insurance, the top 10 least expensive cars to insure in 2024 are:
1. Kia Picanto
2. Fiat 500
3. Suzuki Ignis
4. Toyota Yaris
5. Kia Rio
6. Mazda Mazda2
7. Toyota Corolla
8. Hyundai Venue
9. Kia Stonic
10. Suzuki Swift
When you look at the list and compare the cost of the vehicle and the annual insurance cost, you will see that the cheapest cars do not always have the lowest price. Insurance companies weigh numerous factors when calculating your price. For example, insurers consider both the vehicle and the primary driver when calculating the cost of insurance.
The car you choose has a great deal of influence over your insurance costs. However, it is important to remember that potential insurers have many driver-related elements that go into determining your insurance rate. Here are five crucial factors insurance companies consider when determining your rate.
Sorting out the financial aspects of buying and insuring a car can be challenging. If you need guidance about the best car for your budget, or if you would like to arrange an appointment to speak with one of our loan experts, feel free to contact Loans Unlimited. Our team of professionals can help guide you through the processes involved and help you get the best deal possible.
Loans Unlimited are Perth and Western Australia’s premier loan and finance brokers. We have helped thousands move towards their financial goals by offering lower rates and faster approvals when it matters. Financial services are provided by Total Biz Pty Ltd T/A Loans Unlimited ABN 78 624 937 882 ACL 506875.
* The comparison rate shown is for a secured loan amount of $30,000 over a term of 5 years based on monthly repayments. Warning: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
Any calculations or estimations do not constitute an offer of credit or a formal credit quote and is only a calculation of what you may be able to achieve based on the information you have entered. It does not take into account suitable product features or loan product types. Rates + repayments shown are based on user inputted data. All applications for credit must be verified prior to the formal assessment process. All applications for credit approval are subject to lender credit approval. Approval is not guaranteed.
