Thinking About 'Ca$h for Clunkers?' Don't Forget the Insurance

State Farm wants you to remember all of the costs

BLOOMINGTON, Ill., Aug. 17 -- You may be looking to the Cars Allowance Rebate System (CARS) to put you into a newer, more fuel-efficient vehicle. While you crunch the numbers to see if you qualify, you should also consider your insurance costs.

  A newer vehicle typically costs more to insure for several reasons:
  1. One of the many factors used in determining insurance premium is the
     manufacturer's suggested retail price (MSRP). A more expensive car is,
     the more it costs to repair or replace.
  2. The costs associated with repairs on a new vehicle are typically
     greater than on an older vehicle because the parts are more expensive.

  3. If you are financing, you are typically required to carry more coverage
     on a newer vehicle.

There are ways you can lower the cost of insurance for that new car or truck you've been considering:

  1. Consider a higher deductible -- It will usually result in a more
     affordable premium.
  2. Ask about discounts -- Multi-line, good student, and safe driver
     discounts can save you a bundle. Ask your agent about other available
     discounts.

  3. Drive less -- If you don't drive as much, you're less likely to get in
     an accident. That will result in lower insurance costs.

Whether you're participating in CARS or not, it's a good idea to have a conversation with your agent about the true cost of your new ride.

Vehicle research tools like make and model ratings are available at: http://www.statefarm.com/insurance/auto_insurance/auto_insurance.asp?WT.svl=3

About State Farm :

State Farm insures more cars and homes than any other insurer in the U.S., is the leading insurer of watercraft and is also a leading insurer in Canada. State Farm's 17,700 agents and 68,600 employees serve 81 million policies and accounts - more than 78.7 million auto, fire, life and health policies in the United States and Canada, and more than 1.9 million bank accounts. State Farm Mutual Automobile Insurance Company is the parent of the State Farm family of companies. State Farm is ranked No. 31 on the Fortune 500 list of largest companies. For more information, please visit statefarm.com or in Canada statefarm.ca .