Buying a brand new car instead of a used vehicle will likely result in higher insurance costs, due to the higher value of your car. However, because a new vehicle is likely to be more efficient than a used car you can make significant savings on your fuel spend and on motor tax.
WHY SHOULD I OPT FOR A NEW CAR INSTEAD OF A USED ONE?
While it’s true that insuring a new vehicle will, on average, cost more than getting cover on a used vehicle, there are some advantages to opting for a brand new car. The main advantage is that both you and your insurer can be confident in the car’s history. As used vehicles are likely to have had parts repaired or replaced in the past, there may be some doubts over the car’s long-term reliability. Opting for a brand new car gives you the peace of mind of knowing exactly what you’re getting for your hard earned cash!
It’s also worth noting that most modern cars are built with efficiency as a priority, as opposed to power which was a key concern of car manufacturers in the past. Having a more efficient car can help you spend less on fuel and motor tax, as you’ll likely find yourself in a lower emissions band than you would with a used car, but can also help you save slightly on insurance. Engine size is one of many factors considered when calculating insurance premiums, so having a new car with a smaller engine will likely prove easier to insure than an older car with a larger engine.
GETTING GOOD VALUE INSURANCE
Before you buy any car, whether new or used, it’s important to do your research. Even if you don’t know the car registration it can be worth your while getting some sample car insurance quotes in order to get an estimate for how much cover will cost. While the exact premiums may vary once you have actually purchased the car, taking the time to get some sample quotes will at least give you a guideline price to factor into your budget.
While taking out sample quotes, it can also be worth comparing different insurers and the discounts they offer in order to reduce your car insurance costs. Different insurers will offer different policy discounts, for example AA Car Insurance is currently offering a €75 discount on all online quotes, which means that taking the time to compare different insurers can help you get the best deal on your new car.
However, a key thing to bear in mind when it comes to insuring your new car is how quickly its value will depreciate. On average, a new car will depreciate in value by approximately a third in the first 12 months, meaning it can be worth re-assessing the valuation you placed on your car at the time of your first insurance renewal to help avoid paying more than you need to for cover.
Looking for insurance on your new car or an existing vehicle? Â Click here to get an AA Car Insurance quote online.
