Thinking About “Ca$h For Clunkers?“ Don’t Forget The Insurance

State Farm wants you to remember all of the costs

Bloomington, Illilinois.– You may be looking to the Cars Allowance Rebate System (CARS) to put you into a newer, more fuel-efficient vehicle. While you crunch the numbers to see if you qualify, you should also consider your insurance costs.

A newer vehicle typically costs more to insure for several reasons:

1. One of the many factors used in determining insurance premium is the manufacturer’s suggested retail price (MSRP). The more expensive car is, the more it costs to repair or replace.
2. The costs associated with repairs on a new vehicle are typically greater than on an older vehicle because the parts are more expensive.
3. If you are financing, you are typically required to carry more coverage on a newer vehicle.

There are ways you can lower the cost of insurance for that new car or truck you’ve been considering:

1. Consider a higher deductible -- It will usually result in a more affordable premium.
2. Ask about discounts -- Multi-line, good student, and safe driver discounts can save you a bundle. Ask your agent about other available discounts.
3. Drive less -- If you don’t drive as much, you’re less likely to get in an accident. That will result in lower insurance costs.

Whether you’re participating in CARS or not, it’s a good idea to have a conversation with your agent about the true cost of your new ride.