My friend has a 1990 Mazda B-2200 Club Cab 4x2 and he's paying $140 per month for insurance. I keep telling him that if he gets a new car his insurance rate will go down because of the safety features on that car. His truck has no ABS, airbags or any other safety features besides seatbelts. He's looking to get a 2008 Volkswagen Rabbit. Now the Rabbit has standard 4-wheel ABS, front, side and curtain airbags, traction control, etc. The price of the car is around $17,000-18,000 but he's still worried that he'll pay more each month. Is that actually true or am I completely wrong?
Well, his insurance rate will go up on a new car, even with the safety features and even if he still carries full coverage on the 1990. ABS credit is probably $20 per year. Airbags may be another $20-30 per year. He probably has liability only on the 1990 Mazda (he is crazy to pay for full coverage on a vehicle that is probably only worth a few hundred dollars). Think about it, the new car is 18 years newer & worth about $17,000 more, why would an insurance company want less money to insure it??? Tell your friend to call his insurance agent, have them quote the difference between his current car & the car he is looking at. THEY will be the ones to tell him how much the insurance will go up. They will be happy to quote this for him too. I do it every day. I would much rather have my insureds call up 5 times for quotes for 5 different cars than have them just get one expensive car & yell at me because they don't like how much their premium increased.
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