An Auto Sales Student’s Guide to Car Insurance
July 7, 2015
Buying a new car can get very expensive, very quickly. While industry experts know that the car itself will generally cost a large amount of money, there are still a lot of other factors to consider when perusing for a vehicle—like car insurance. Many people tend to neglect (or underestimate) the cost of car insurance when creating a new car budget, which is a huge mistake. This is because studies have actually shown that the insurance premium on some cars can be at least three times the rate of others.
If you are currently enrolled in an auto sales college, or thinking about pursuing a career in the auto sales industry, you will soon learn all about how premiums work, as well as which types of vehicles will cost your customers a greater sum in insurance.
Here is a quick and handy guide to understanding car insurance and the cars that will cost the most, and the least to insure.
Auto Sales Specialists Know that Expensive Cars Cost More to Insure
Graduates of auto sales colleges know that there are several factors that most insurance companies focus on when clients are seeking a quote. Of course, the most obvious element is the price of the car itself. Generally, the more expensive the car, the more costly the insurance premium on that car will be—which makes sense. If you total a $100,000 vehicle, it will definitely cost the insurance company much more to replace than one that is $20,000.
A Safer Car Means a Lower Insurance Premium
Research has shown that when a car is loaded with safety features, the insurance premium will typically be lower. This is because a car that has more safety features indicates that its passengers will be less likely to suffer serious injuries. Additionally, those who choose to drive safe vehicles are much less likely to be reckless on the road. Of course, it should come as no surprise that if the insurance premium is lower for safe cars, it increases for fast cars, as well as large trucks which are considered to be more dangerous.
Auto Sales Pros Understand the Importance of a Clean Driving History
Anyone with car sales training knows that a person’s driving history also plays a major role in the cost of insurance—those with a great driving record will usually pay less for car insurance than those who have a few speeding tickets and fender benders under their belt.
A Glance at Insurance Rate Estimates for 2015 Models
Insure.com looked at insurance rates for over one thousand 2015 vehicles and got quotes from several major insurance companies including Allstate, GEICO and Progressive. Insure found that these models were among the top five least expensive to insure, all with a rate less than $1,200.
- Jeep Wrangler Sport 4WD
- Jeep Patriot Sport 2WD
- Honda CR-V LX 4WD
- Dodge Grand Caravan SE Plus
- Honda Odyssey LX
If a car-buyer is looking for something a little more extravagant and doesn’t seem to mind a higher price tag (on both the car and the insurance premium), they might end up buying one of these luxury vehicles, which also happen to be the most expensive to insure:
- Nissan GT-R Nismo
- Mercedes-Benz SL65 AMG Convertible
- Dodge SRT Viper
- Porsche 911 Carrera S Cabriolet
- Audi R8 5.2 Spyder Quattro
Archives by Month:
- July 2018 (10)
- June 2018 (21)
- May 2018 (24)
- April 2018 (20)
- March 2018 (22)
- February 2018 (20)
- January 2018 (27)
- December 2017 (21)
- November 2017 (23)
- October 2017 (22)
- September 2017 (23)
- August 2017 (25)
Archives by Subject:
Warning: Illegal string offset 'taxonomy' in /home/philippetaza/public_html/wp-content/themes/_prototype/functions.php on line 2768
ATC News (1,216)
Auto Mechanic Graduate (4)
BC Auto Industry News (53)
Canadian Auto Industry News (45)
Dispatching and Transportation Operations Graduate (5)
Hello world (1)
Look Who Dropped In Today… (9)
Montreal Programs (14)
Online Program (2)
Student Services (2)
Student Testimonials (25)
Surrey Programs (65)
Toronto Programs (11)