The cost of first car insurance for young women is cheaper when compared with their male counterparts
With your first car come responsibilities and extra expenses such as the drivers first auto insurance. Since young drivers are considered more prone to getting involved in accidents, the first car insurance prices are usually very high.
First car insurance prices depend on a number of factor such as your location, gender, the mode of getting your car – leasing or outright purchase. This is because depending on the mode of getting your first car, the type of insurance you are required to buy varies.
For instance, if you lease a car, you don’t actually own the car. You can use the car for a defined period of time, and return it to the owner after that period, unless of course you plan to buy it. According to the Department of Motor Vehicles (DMV), leasing is considered long-term rental. The insurance coverage required for leased vehicle include comprehensive and collision besides the state-mandated auto insurance coverage requirements. In addition, it is your responsibility to fulfill the maintenance requirements of a leased vehicle such as oil change, tire rotation, or general upkeep. Leasing is a good option to find low insurance first cars.
When you finance a car, you take a loan to pay the purchase price of the car. You become the owner of the car only once you have paid off the loan and the title has been transferred in your name. Like the leased cars, you will need to get comprehensive and collision coverage for your financed car apart from the minimum coverage requirement. It may be noted that the cost of first car insurance for young women is cheaper when compared with male drivers first auto insurance. This is usually because of the higher risks associated with young male drivers.
In case you pay the entire purchase price of the car upfront and buy it outright, you become the sole owner of the car. You need to register the vehicle with the DMV. On the insurance coverage front, you can opt for low insurance first cars as mandated by your state.
Remember the cost of your car will not only include its purchase price but also additional costs such as insurance, fuel, maintenance, taxes, and so on. The first car insurance prices are generally high; therefore, you must buy a car that you can afford. Make a budget, considering monthly income and expenses to determine what you can afford.