It is no secret that car insurance rates are nothing less than exorbitant these days, and the price seems to be going up every day. There are many different factors which contribute to these prices. There are, in fact, a number of factors which contribute to how much you have to pay as well. Getting to know these qualifying factors is important.

After all, if you plan to drive, then you have to have car insurance no matter what. The price of car insurance can greatly differ depending on what kind of car you buy as well. It costs more to insure a sports car than it does to insure a standard sedan. Similarly, it costs more to insure a brand new car than it does to insure a used car.

Studies and surveys have even shown that it costs significantly less to insure your vehicle when it is either an older model or a used one. New cars are so expensive to insure that it borders on ridiculous. Given the current state of the economy, not many people can afford such a luxury. The premiums for newer cars can seriously do you in financially. This is because of the safety record for new cars, and even how much replacement parts for new models cost.

In fact, these factors - replacement parts, safety records, the car's power, its top speed, et cetera - are what ultimately cause a car to be place in its appropriate insurance group. Usually, you are told the category in which your car classifies when you go to buy it. That is why younger and first time drivers often ultimately purchase smaller cars. They are notoriously cheaper to insure.

A top car manufacturer recently put out a press release outlining how one of their newer models somehow made it into a cheaper insurance group. This can be attributed to that particular car's safety record and because the parts it uses are significantly more affordable. In this case, the cheaper insurance premiums also means that the people who buy and drive this car may not have to deal with the upcoming changes in road taxes.

Face it, just about everyone wants cheap car insurance. We want insurance which is affordable but effective. The good news on this front is that many insurance companies are now offering more affordable premiums. You simply need to know where to look - and which cars best qualify for cheap insurance.

That is part of the reason so many people are turning to used cars these days. Not only do they cost less to buy, but the insurance premiums are much cheaper as well. In the end, they make for a better investment. Plus, you do not run the risk of losing much money if you later want to upgrade to a newer model.