Dear Lee,
The Toronto auto show is here this week, and I have my eye on a convertible. I'd like it in red - but can I afford the insurance, or should I buy it in blue? Are new cars more expensive to insure than older ones? If I want a sports car, as opposed to a boring car, am I looking at insanely high insurance rates?
To your first point, insurance companies are colour-blind. Buy the colour of car you want, and be assured it will not affect your insurance rate.
It's the police that can spot a red car speeding a mile away. That's what can affect your insurance rate!
The auto show can help you drive the car of your dreams or your mom's hand-me-down. It's also a perfect avenue for saving money if you're looking at buying a new vehicle.
But for many drivers, the irrational fear of high insurance rates influences their decision to buy a new car.
Checking out the insurance rates for a new car isn't something to fear. In fact, it could save you money.
The lowest rate possible on a brand-new car could be cheaper than what you're currently paying for your old clunker, especially when you take into consideration the cost of maintenance and repairs.
The key is to find the best rate possible. I compared 30 insurance companies' rates for several new and older models for the same car.
I found some older cars were a couple of hundred dollars more expensive, some were a couple of hundred dollars less expensive. It's going to be different for everyone, so you need to do your own search.
Just as not all cars are created equal, not all insurance companies are the same either, as each insurance company has their own distinct personality.
Some insurance companies do cater their rates to high-end vehicles, young drivers and drivers with tickets and accidents. The trick is to find which company has the best rate for your individual driving record and taste in cars.
As an example of how rates can vary, the chart shows a comparison of 30 insurance companies' rates, lowest to highest, contrasting a Hummer to a Civic. The Hummer's insurance cost came in lower, even with a spotty driving record.
There are other things you can do to keep your insurance rate low, too.
If you have tickets or accidents that are about to fall off your record in a few months, get a six-month policy. This way, after the six months, you can be quoted a much better rate as a "clean driver" instead of paying for your past sins any longer than you have to.
Tickets or convictions fall off your record after three years, accidents after six years.
With these roadblocks removed, repeat this affirmation: "I am open to new possibilities." And enjoy the show.
Lee Romanov is an insurance consumer advocate and creator of http://www.romanovreport.com.
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Comparing Rates
| Clean Record Lowest | Clean Record Highest | One Ticket & Accident Lowest | One Ticket & Accident Highest | |
| Hummer | $1,651 | $3,138 | $2,812 | $8,769 |
| Honda Civic | $1,602 | $3,125 | $3,812 | $11,271 |
