Why Is Insurance for a New Car So Expensive?

[MacNolan]

Because the insured value of a new car is high. The insured value refers to the value of the subject matter of insurance that serves as the basis for determining the insurance amount when the policyholder and the insurer enter into an insurance contract. It is the monetary estimation of the policyholder's insurable interest in the subject matter of insurance. Additionally, new cars do not come with price discounts. Here is some extended information: 1. Types of auto insurance: In addition to the mandatory compulsory traffic insurance, there is also commercial insurance. Commercial insurance generally includes vehicle damage insurance, third-party liability insurance, passenger seat insurance, and no-deductible insurance, among others. 2. New cars require more coverage: New cars typically need to purchase more insurance because they are more prone to minor collisions, and new drivers should consider vehicle damage insurance. Vehicle damage insurance is a type of commercial auto insurance where the insurance company compensates within reasonable limits. It covers damage to the insured vehicle caused by an insurance accident while being driven by the insured or an authorized driver.

[ElenaFitz]

I was shocked by the insurance cost when I first bought my new car—it was ridiculously expensive. The insurance company explained that as a new driver with limited experience, I’m considered high-risk and more likely to be involved in accidents. Since new cars have high market value, repair costs are steep—even minor damages like a broken light or body scratch can start at thousands. Theft coverage would be even more costly. Plus, advanced technology in new cars means expensive and hard-to-repair parts, so insurers naturally charge higher premiums. I consulted friends who suggested improving my credit score, as good credit can slightly lower premiums. Additionally, completing a safe driving course might help, as some insurers offer discounts. In short, high insurance costs for new cars in the first few years are normal, but they’ll gradually decrease as your driving record improves.

[ElijahFitz]

I've gone through several car purchases and found that insurance for new cars is always expensive. The main reason is the high vehicle cost, meaning insurers have to pay out large sums in case of damage or loss. Those high-tech components in new cars, like autonomous driving sensors or electronic displays, are complex and costly to repair. When assessing risk, insurance companies view new cars as high-risk assets, driving up premiums. From a safety perspective, while new cars have excellent safety features, the costs are substantial when issues arise. I usually compare quotes from multiple insurers as there can be significant differences between companies. Maintaining a clean accident record for years can lower premiums. Additionally, considering insurance factors when choosing a model helps – some brands or models have cheaper insurance, like economy cars. Smart planning can save a considerable amount.

[GabrielaRose]

I've been driving all my life, and new car insurance is just expensive. Nowadays, automotive technology is advanced, things are more expensive, and insurance companies have to pay out more. In the past, used cars were cheaper, and premiums were lower. New cars carry higher risks—they're more likely to be stolen or involved in accidents with inexperienced drivers. Insurance companies have to cover these losses. I think higher premiums are worth it because new cars have better safety features. I drive carefully and have never been in a major accident, so my premiums decrease year by year. When you buy a new car, maintaining a clean driving record is key. Safe driving without taking risks keeps premiums from becoming outrageous. Insurance is an investment in safety—don't regret spending on it.