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Buying the car is the exciting part. You get to sit in a whole bunch of shiny new cars in the showroom, take a few test drives round the block. . . Then dreams meet the reality of what you can afford and, some time later, you have picked your transport for the next year or so. Except for that nagging question: can you also afford to insure it?
Now is the time to meet the Highway Loss Data Institute (HLDI).This nonprofit organization collects and analyzes the millions of claims a year that hit car insurers and publishes the loss results by vehicle make and model. This is exactly the same system for centralizing data as is used by the credit industry. Just as you have a credit score that affects how much you can borrow, each make and size of vehicle has a rating of how likely it is to be involved in an accident, how many times it will be stolen, and so on. This sets the insurance rates.
The HLDI works alongside the Insurance Institute for Highway Safety (IIHS) which tests cars for safety. Put the two together and you get a complete picture of whether you are likely to be involved in an accident in any given car and, if you are, how badly you may be injured. Equally important are the statistics on thefts. Some cars are easier to steal than others — their door locks and ignition systems are easy to beat. Some cars are more desirable than others. That new sports car you are sizing up may also be attractive to thieves — don’t forget, some steal to order. If you want it, others may also want it without paying.
Then think about size. If you’re sitting in a small car with comparatively little metal around you, how will you fare if hit by a truck? Now put yourself in the truck. Although the design of smaller cars is improving rapidly and gives more protection, the best designed larger cars are the safest. Note the emphasis on design. Some larger cars are relatively unsafe. The test is not the amount of metal in the shell around you but how that metal is used to resist impact.
Finally, think about the cost of replacement parts. If you bend your fender, is it an expensive import or can you fit a part off the shelf for just a few dollars?
Put all these factors together and you have a sound basis on which to make that decision whether to buy the car. You should be using online car insurance sites to get comparative quotes for different makes and models of cars long before you walk into the showrooms. These sites offer a free service. Get to know what you can afford to insure before you go out to buy.
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