Why Is Insurance So Expensive for New Cars?

[NovaLee]

The reasons why insurance is expensive for a new car in the first year: 1. High insured value of the new car: The insured value, also known as the insurable value, refers to the value of the subject matter insured as the basis for determining the sum insured when the policyholder and the insurer enter into an insurance contract. There is also a stipulation that, unless otherwise agreed in the contract, the insurer shall reduce the insurance premium and refund the corresponding premium on a daily basis. 2. More insurance policies are required for new cars: Since new cars are prone to minor collisions, new drivers need to purchase collision insurance. Collision insurance is a type of commercial auto insurance where the insurer compensates within a reasonable range. It refers to damage to the insured vehicle caused by an insured accident while the insured or an authorized driver is operating the insured vehicle. 3. To minimize losses, consider purchasing all insurance coverages except natural loss insurance: For example, theft insurance, glass coverage, spontaneous combustion coverage, and scratch insurance can be purchased based on individual needs. When buying auto insurance, priority should be given to maintaining the ability to compensate for others' losses.