Will my car insurance go up if I buy a new car?
I'm currently driving a used 99 honda civic. Suppose if i buy an all new 2012 toyota camry. Will my car insurance go up? I'm currently 18, and my car insurance cost me 800usd for 6 month. And should college students like me buy an all new car?
First of all, a 2012 Camry is not new, it is three years old. Secondly, there's no way you will be able to finance it, even with a co-signer. Therefore, either you have the folks buy it for you, and you pay them back, or stick with the Civic.
At this point, you probably won't find a NEW ( never had a previous owner; VERY VERY low mileage) 2012 Camry. But, yes, your insurance will absolutely go up. You'll need full coverage on a car that you are financing. It's also worth more than your 99 civic
OF COURSE it will. Replacement cost is higher, so the rate is higher DUH.
Your 99 Civic is USED? (what else COULD it be but used?)
Yes and substancially. Its a newer car. Cost more to repair. Hence higher insurance.
The more expensive the car, the higher insurance is generally.
Your new car is worth a huge amount more than your old one. The insurer therefore carries a much larger financial risk in the event of a claim, so that has to be reflected in the premium you'll get charged. On an old car like yours most people will only have basic insurance to cover Third Party damages, fire and theft. On a new car it's foolish to have anything other than fully comprehensive cover which covers the cost of damage to your own vehicle; if you financed the purchase then the lien holder will insist that you have such cover. Fully Comprehensive cover costs a lot more than basic cover.
As to whether you should own a new car, that's entirely your decision, but as a relatively new driver you are far more likely to have minor collisions and far less likely to be able to afford to keep up with the maintenance schedule needed to maintain the car warranty. Students also get charged a higher premium than average. Personally, I would stick to driving an older model.
In summary: yes, it will go up.
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