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How New Cars Affect Your Auto Policy

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The New Car!


Ferrari F430 in Madrid, HDR Marc via Compfight


Recently we had a man, 24- year old, replace his ’07 Camry with a 2015 Subaru Legacy.  The cars are pretty similar, both cars are 4-door sedans.  The Legacy has 4-cylinders, the Camry has 6.  When I made the change to the policy the rate shot up about $800 for the year.


Didn’t expect that to happen.

After I saw the increase I started quoting around with the other carriers we represent.  One problem I was having was that the driver had recently been involved in an at-fault accident.  The accident occurred just a few months prior to his current policy renewal which meant that his current carrier was not taking the accident into consideration when determining his rate.  The other companies are.  So trying to find a better rate with a different carrier was not happening.

However, even if he were not involved in the accident the 2015 Legacy was still causing the rates to be higher with all of the other carriers.  So I started to experiment.  What if he had purchased a 2015 Chrysler Town & Country instead of a Legacy?  Minivans are among the least expensive cars to insure.  When I plugged in the minivan the rate still went up, but not quite as much.

Maybe the brand new cars are more expensive to insure?  I put in the information for a 2010 Town & Country.  The rate went up compared to the Camry but less than the newer model.  Maybe Toyotas are just very inexpensive cars to insure!!


How this Benefits You

Don’t go into a new car purchase blind.  An $800 increase is significant and I’m sure our client would have liked to have known that this was going to happen to his policy before buying the new car.  When you are looking at new cars, call your agent and ask them to give you a quote.  I have had people call with four or five cars they are looking at to make sure the insurance would be affordable.


What to do if the Rates skyrocket?

Start shopping!  Look, if the increase to our client’s policy had been a hundred dollars or so then it wouldn’t have been much of a big deal.  But an increase of $800 is just too much.  When I last spoke with him he did say he found a carrier that offered a rate somewhere in between what he was paying for his Camry and the proposal I gave to him for the new Legacy.

If your rate increases to a cost that is not affordable than you should consider shopping around.  I’m all about loyalty but you need to look out for yourself and what’s best for you.


If you shop…

If you do look around at other carriers make sure you ask for the same or better coverages than what you have.  You do not want to switch carriers to save a few hundred dollars only to find out your deductibles have increased or your liability limits have decreased.  Have your agent review a new quote if you are uncertain.  I have been going back and forth with a client all day about a quote he has with a different company.

We’re insurance agents.  We’re here to help you, even if we lose you.


Happy shopping an enjoy your new car!


My name is Keith Laskey. My goal is to educate the everyday consumer and to help them make intelligent decisions with their insurance policies.  Please contact me at my office, 610-948-4830, for any insurance related questions or concerns.  You can also visit the Ron Black Agency website or like us on Facebook!  Thank you for stopping by, have a great day!



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