Why A Sub-Compact Car Is The Perfect Choice For Getting Low Car Insurance Premiums

Insurance Blog

Similar to how not eating a candy bar can prevent you from having to exercise for an hour to work it off, living a frugal lifestyle can prevent you from feeling the need to make more money. Living frugally is not about living cheaply, but making smart decisions to maintain high-quality living. If you want to buy a vehicle, you should take a look at sub-compact cars as they can help you get low car insurance premiums.

Low Purchase Price

One of the factors that insurance providers consider for determining premiums is how much the vehicle costs. Fortunately, sub-compact cars are some of the most affordable vehicles on the market, with most of them starting at around or right under $18,000. This number is quite reasonable compared to luxury cars on the market, which can easily cost twice as much and will lead to costlier insurance claims.

Low Horsepower

Most sub-compact cars are designed to provide the driver with excellent fuel economy. To accomplish this goal, car manufacturers do not build these vehicles with much horsepower. Low horsepower and 4-cylinder engines make it impossible for drivers to rapidly accelerate or reach extremely high speeds. These details give insurance providers the ability to charge lower premiums for sub-compact cars since they know that their customers will not get into accidents going 100+ MPH or through reckless acceleration.

Intended Driving

When a person buys a vehicle, for the most part, they get one that reflects their driving preferences. Most people are not going to spend a large amount of money on a sports car and not utilize its features on the road, which is seen as a major risk from an insurance provider's perspective. As a result, sports cars cost more to insure and sub-compact cars are inexpensive because of the driver's intended driving habits.

Great Safety Ratings

Although it might seem that sub-compact cars would not have excellent safety ratings because they are so small, you can find many makes and models that are perfectly safe on the road. These ratings help insurance companies determine rates as it can give them an idea of how much damage a car will incur when involved in a collision. Cars with lower safety ratings will naturally cost more money to insure.

Buying a reliable car will help you keep your maintenance and repair costs to a minimum. Making it a sub-compact model that you buy will allow you to save a great deal of money on car insurance premiums. Contact a local agent, like Thomas A. Nolfi Inc., for more information.

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16 February 2016

Understanding Insurance Policies

When I got married, I knew that there were a few things that I needed to learn about the way the world worked. For starters, I had to figure out how insurance worked since I wanted to make the most of my life without worrying about money. I started focusing on the policies that I had in place and gradually moved towards acquiring new life insurance and the like. Having each of these coverages helped give both me and my spouse peace of mind. We both knew if something happened to me that the other would be okay. Check out this blog to learn more about insurance needs.