Car buyers nowadays not only calculate their buying budget, but also the amount of money they need for value-added products and services like warranty, auto insurance, etc. Auto insurance helps a car owner to mitigate the losses incurred by the vehicle, this providing financial security to the car owner. In case of an unfortunate event, an auto insurance company takes care of the costs instead of the owner paying out of his pocket.
Auto Insurance largely depends on a number of factors like location, reparability, loss history and deductibility.
Before opting for auto insurance, it is always better to understand your vehicle type, keeping in mind its value and the amount of coverage it will require. Here are a few things to keep in mind when while estimating the budget for car insurance:
1. Car price is directly proportional to insurance cost
As one moves from base models to a high-end model of a car, the cost of car increases. And so does the cost of auto insurance. Plus, it is not an easy task to take care of high-end cars. Therefore, the costlier a car, the more expensive it will be to insure it thus increase your auto-insurance budget by manifold.
2. Complex vehicle parts means high cost of insurance
High-end car models usually feature unique technologies. And these technologies comprise of advanced parts made up of materials that are sometimes beyond the understanding and in case of imported parts or materials, they are beyond the expense of service technicians. This results in increasing cost of damage claims, thus increasing your auto-insurance cost and budget.
3. Better safety features means low insurance cost
A car which is well-equipped in terms of safety of its drivers and passengers lowers the insurance cost. This is because the lesser the chances of accidents and injuries, lesser is the medical expenditure. Therefore, it won’t be wrong to conclude that a good quality car backed by a reliable owner will be cheaper to insure.
At Volkswagen Financial Services, our aim is to simplify the procedure of purchasing a Volkswagen Group vehicle. We believe in offering the finest deals to our customers and providing a smooth purchase process. Hence, we not only offer car finance to purchase the car of your dreams, but also offer auto-insurance and extended warranty on all our vehicles.