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Posted by on Feb 4, 2013 in Insurance | 0 comments

What’s the most expensive part of running a car?

What’s the most expensive part of running a car?

Buying a new car is one of the most exciting feelings. For some reason motor vehicles hold a very close importance to many people on this planet. Quite often because many of us require to travel around from place to place and a car is a status symbol. Businessmen notoriously have expensive cars regardless of whether or not they actually generate that much income because who want’s to do business with an unsuccessful person? No one.

So cars can give you an edge in business, make you happy and even become a full time venture. Some people lease expensive cars to create youtube videos and then sell advertising on either the car itself or their website. If done correctly it can make a very nice return on investment. So you’ve saved up your money to buy a car but have you evaluated the other costs about car ownership?

Car Insurance

The second most expensive aspect after the purchase of the car. This varies depending on age and driving history, in essence the older you are the cheaper it gets and the less accidents and claims you’ve had also drives down the price. The type of car will have the biggest impact on how much it costs to insure. An Aston Martin is going to cost more to insure than a Ford fiesta. High powered cars that pose more off a risk are always going to cost more. As you buy a more and more exclusive car you also need to consider the running costs. If your car has nationwide service centers and thousands of models are sold each yeah then servicing the car is going to be far cheaper than going to specialist dealers who specialise in Aston Martin services. Also cars that are manufactured in China, Thailand are often cheaper to service because spare parts cost less to produce.

How do you find the best car insurance?

Car insurance varies tremendously from provider to provider why? Well they rarely specialise in all ages, so to reduce competition they make prices cheaper for a certain age group so that they can undercut competition. This does mean they have to increase it over others at a different age group to cover any costs associated with providing cheaper cover at other ages.

So you’re best bet is to use a car insurance comparison website. It saves time, as opposed to going to each individual insurer and requesting a quote that often takes around 10 minutes per form to complete. Just make sure you watch which tick boxes you select, some may share your email with partners and you will end up getting spammed to death. However this is sort of scaremongering, many never spam you and provide with cheap car insurance.

So before you purchase your new car be sure to get a car insurance quote and check how much the average service fee is each 20’000 miles!