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Think insurance, then buy
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May 1, 1998: 3:43 p.m. ET
Buying the right car can reduce your costs after you drive it off the lot
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NEW YORK (CNNfn) - Making a few wise choices before you buy a car can help keep insurance costs under control after you've driven off the dealer's lot.
While the latest model might look great in the showroom, few people consider all of the costs they will incur after they drive home.
"When somebody goes into a showroom, they are going to focus on the sticker price," said Michael Lamonica, vice president of auto pricing at Allstate Insurance Co.
"They are going to maybe look at things like gas mileage but they probably are not going to be paying a lot of attention to insurance costs."
The car you choose can either add or reduce your current insurance bill by hundreds of dollars a year.
A new study by Allstate compares insurance costs among different car categories and models. Among the cheapest cars to insure were the Chevrolet Suburban, the Infiniti Q-45 and the Oldsmobile Aurora.
The most expensive to insure range from the Acura Integra and Ford Mustang GT to the Nissan 240SX and the Toyota Land Cruiser.
Jerry Edgerton, author of "Car Shopping Made Easy," says a variety of factors are the reason for differences in insurance rates. (114K WAV) or (AIFF)
To lower your insurance, get at least five quotes from different agents in your area. You can also install a theft deterrent, such as a tracking device or a kill switch, which prevents a car from starting without a special key. Combined, these actions can cut your insurance costs by up to 10 percent a year.
Edgerton also advises raising the deductible on your insurance. "For each $100 you raise your deductible, you might save 5-10 percent on your total insurance bill."
The average annual cost of car insurance fell slightly this year to $692. It was the first decline in more than 20 years. However, insurance specialists warn that as the teenage driving population grows and speed limits rise, rates may begin climbing again.
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