Old car or new for cheap car insurance?
Aussies in the market for a vehicle may be weighing up the benefits of a new car against a second-hand one, but what is the impact that this has on their car insurance.
One of the benefits of a cheaper, older machine is that the insurance is likely to be less on these vehicles, as they are not worth as much to replace if stolen or written off in a crash.
It may also cost less to repair older vehicles if they are models with plenty of cheap spare parts available on the market.
However, there are advantages to getting a new automobile, as these could be fitted with better safety and security features, which may help push down car insurance prices.
Adrian Walsh, director of Roadsafe in the UK, highlighted the difference between buying an old or a new car earlier this year: "Older vehicles tend to cost less to insure but this benefit is diminished in the event of a crash, as they lack the safety systems found in newer models."
Figures published by the Australian Bureau of Statistics yesterday (October 17th) revealed that seasonally adjusted new vehicle sales rose 1.3 per cent in the year to September 2011.
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