Not all cars are created equal. There can be a very large cost difference between one car and another. If you are trying to buy  a new or used car that won’t break the bank on both the cost of the car and  auto insurance, there are some things you’ll need to consider.

Used or pre-owned cars are obviously the number one choice for those people wanting to save much more money on their total car investment. This is a smart choice because when you buy a brand new car, it loses a lot of value as soon as you drive it off the lot.

You don’t want to buy a very old car though. I consider a very old car, 1o years or older.  If the car is that old, the maintenance may cost you a lot of money. Also, car insurance companies don’t want to insure very old cars.  They are more likely to break down, not perform well, and become dangerous to drive.

You’ll want to look at cars that are only 5 to 8 years old. These have lost their initial new value, keeping the cost down, but are still in good shape. Take a look at the car’s history. A good rule of thumb is the fewer the owners the car has had, the better. You can tell this by the letter designation on the title.  Example A (1st owners) B (2nd owner) Make sure it hasn’t been in any major accidents either. You can order a car fax report which will provide you information regarding the car from Equiax/Clue.  These are the same companies which provide claims information to auto insurance companies when underwriting a new insurance policy.  Although the owner of the damaged car may offer you a better price,  be sure that the car was adequately restored from the accident.

When it comes to insuring a car, a general rule is that more expensive the car is the more expensive it is  to insure. This is because the higher the value of the car, the higher the cost to replace it should it  be stolen or damaged. Even older, less expensive cars are often less expensive to insure than some newer cars.

This is important to keep in mind, because you are trying to save money on the car itself as well as the insurance. It’s a win-win situation; cheaper car equals cheaper car insurance rates.

Another factor in keeping  insurance rates low is where the car is made. Typically a car manufactured in the US are cheaper than others made in another country. The reason for this is the cost of shipping and taxes for both the cars and parts.

Other thing to focus on are cars with four doors rather than two. Four door cars are statistically less likely to get into accidents and speeding tickets than sportier, two door cars. This may be especially important if you are looking for a car for your teenager. Because of the high incidents of teenage driving accidents, you’ll want to get a car that is known for safety. Not only may this help prevent accidents and injury, the car insurance rates will be lower.

The same goes for cars with four-cylinder motors versus those with six or eight. Statistically, the higher-powered cars are more likely to get into accidents.  The four cylinders seem to be viewed as safer, and therefore less expensive to be insured.

Minivans and other “family” cars are also less expensive. This is because auto insurance companies assume people drive much more carefully and cautiously in a vehicle that is transporting children and family.

If you are looking for an affordable car, you probably don’t care much for something flashy, sporty or particularly fast so hopefully these tips have helped you. Remember to invest in a slightly used, four-door, American made car to reduce your purchase and insurance cost.

The last thing to consider is your driving record and the insurance company you choose. Your driving record will certainly be a factor in determining the cost of insuring your car, so consider any tickets or accidents that you have had recently.

If you are insuring a new teen driver, be sure to explain to them the potential cost of traffic tickets. Many new drivers understand they will have to pay a fine, but don’t realize that it can also increase their insurance rates.

Insurance company rates will vary from company to company and state to state. To find a cheap auto insurance company, spend a little time searching online. You can often compare quotes to find a company that will give you the best rates possible.

One common misconception is truly an urban legend.  The color of your car determines your rate.  A red car is the worst color you could buy. The truth is;  “it’s not the truth”. Please feel free to buy any color car toy like.  As an insurance agent for 20 years, I have never once asked the color of a customers car.

– Mike