Buying a new car is exciting, but it can come with some unexpected costs that are overlooked. When it comes to auto insurance, the type of car you purchase in Charlotte, North Carolina will impact the amount you pay each month. Although it does impact your rate, the specific policy that you purchase and the situation will determine how your rates are affected.

Basic Liability

If you only purchase the minimum liability policy, then the type of car that you own may not impact your rate dramatically. The reason is simple: the insurer is not paying for damages to your vehicle.

Even if you have the most expensive car on the road, if you do not cover the vehicle for damages, then you may not see dramatic differences in your current coverage price.

Comprehensive Plans

Although a basic liability policy may not dramatically impact your auto coverage rates, it is likely that the vehicle you select may impact your rates dramatically if you purchase a comprehensive policy.

A comprehensive policy protects your vehicle when it is damaged from storms, a tree branch or similar situations, so your insurer may increase the rate if you select a car that has expensive repair parts or that has a high replacement cost. If you pick a vehicle that is not expensive to repair or replace, then your rates may stay the same or even reduce.

The impact of your vehicle on insurance rates will depend on the insurer and the particular plan that you select. In some cases, your rates may stay the same. In other situations, it may increase or decrease after you purchase a new vehicle. If you want to learn more about the impact of your vehicle on your policy rates, contact us to talk to an independent agent.