When you buy a new vehicle, you must insure it before you can drive it home. You may need to prepare yourself monetarily for how much you will be expected to pay for premiums, however. 

Before you call about new coverage, you can understand what criteria agents use to price your new policy. An insurance agency often takes into account common factors to decide how much clients should pay for their coverage.

Age of the Vehicle

The age of your vehicle will factor largely into coverage that you buy from an insurance agency. As a rule, newer vehicles typically cost more to insure than older cars. Older cars do not have as high of resale values as their newer counterparts.

When you have purchased a brand-new vehicle, you can expect to pay significantly more than if you were to buy a pre-owned car. The insurance agency knows that it will cost more money to replace or repair your brand-new vehicle if it gets stolen or damaged in a wreck. With that, it will charge you more for your premium each month to offset the liability that it assumes by insuring you.

Type of Vehicle

An insurance agency will also offset its liability with higher premiums based on the type of car that you buy. Sports cars, sports utility vehicles and four-wheel-drive trucks cost more to insure than four-door sedans or minivans.

Likewise, if you buy a collectible car or one that is antique and only used for show purposes, you can expect to pay more for your coverage. The insurance agency will have to pay for your car's full value if is stolen or damaged. With that, it will set the price for your premiums higher.

Finally, your age and driving record will come into play when you approach an insurance agency about coverage. Younger drivers and drivers over 65 tend to pose greater risks while driving. Likewise, people with DUIs, speeding tickets and other infractions are also deemed to be liabilities. If you are younger than 25, older than 65 or have a compromised driving record, you can expect to pay more for your premiums.

An insurance agency uses a number of criteria to price your policy. It will factor in your vehicle's age, as well as its make and model. It will also consider your age and driving record for your insurance premium.

To learn more, contact an insurance agency.