What Car Should I Buy to Reduce My Premium?

Tony Grahn
Written on January 21, 2019

While you shouldn’t choose a car based upon your insurance premiums, it doesn’t hurt to prepare for what it might cost. Make the choice based upon your needs.

It is a bit similar to when someone asks, “Will my homeowner’s insurance premium go down if I put in an alarm system? Of course it will, but don’t buy one just to save money. Buy it because you need it or want it, then capitalize on any possible insurance savings.

Okay, I get the point. You’ve already decided to buy a car anyway, and you just want to know, “If I have options in my choice of purchase, which vehicle will impact my premium the most?”

Here are five main considerations:

1. Stay away from sports cars

2. Stay away from high powered cars

3. Stay away from very expensive cars

4. Stay away from cars expensive to repair

5. Call your agent!

I know that this advice you probably already knew. However, it is all true! If you keep these 5 things in mind, you’re more likely to save money on your premiums. However, the best thing is to simply reach out to your insurance agent and ask them. When you ask your agent and they tell you which is least expensive, make sure you find out by how much. Paying that extra $10 a month more certainly might be worth getting that “dream car.”

Lastly, find out the symbol. The symbol number is an industry code applied to help differentiate between different types of vehicles. The higher the symbol is, the more expensive it will cost. If a symbol is only one number higher than another, don’t lose sleep over it, instead, buy the car you really want. If you’re debating between a Lamborghini and a Ford Focus, though, you might want to think twice!