When you set out to purchase a new or used car, you probably do consider your budget when negotiating the sales price. You probably even shop around for loans with the best rates. You might even factor in an estimated cost of repairs and routine maintenance. However, in order to really predict the cost of vehicle ownership, it’s also important to consider the cost of Houston car insurance. In some cases, premiums can be a significant portion of a vehicle owner’s budget. The type of vehicle is one major factor that determines those premiums.

Typically, insurers favor medium-sized vehicles. Smaller cars tend to get driven by younger and riskier drivers. Large vehicles may actually increase the cost of liability insurance, or the part of a policy that pays for damage to other vehicles involved in an accident that you may cause. Minivans, medium-sized sedans and small SUVs tend to cost less to insure.

The cost of replacing or repairing a vehicle definitely factors into premium rates. It’s fairly safe to assume that a luxury car or high-end sports car will often cost more to cover than an average minivan. On the other hand, insurers also consider a vehicle’s average safety record and the type of people who typically buy a car, so it might not save money to purchase a very cheap car instead of a mid-sized vehicle.

Some cars get targeted by car thieves more often than others. Insurers certainly take this into account. What’s interesting for used car buyers is that older cars might be targeted more than some newer ones because of outdated or nonexistent theft deterrents.

In some cases, a slightly more expensive car might cost less to insure than a cheaper one. Saving money on premiums might allow you to invest in a safer or fancier car. The best thing to do is to ask your agent for competitive auto insurance quotes before making a purchase. That way, you can factor them into your budget in advance.

Get a free quote today. Call Texas Insurance Agency at (713) 921-8000 for more information on auto insurance.