Buying a New Car in 2022? How to Keep Your Insurance Costs Down

Want to lower your car ownership costs? Here's what you need to know.

When you own a car, it's more than just your auto loan payments you need to worry about fitting into your budget. You also need to pay to fuel and maintain your vehicle.

And then there's auto insurance to think about. There are certain factors that can drive the cost of your premiums up, and one of them is purchasing a new car, as opposed to a used one.

Right now, though, there's a shortage of used vehicles, and given that used car prices are up, you may decide to buy a new car this year instead. You'll know the car has never been in an accident, and you'll generally be entitled to a warranty that spares you from certain costs within the first few years of owning your vehicle.

But if you're going to buy a car that's new, it pays to do what you can to keep your insurance costs to a minimum. Here are some options that may work for you.

1. Don't buy too expensive a vehicle

The more a car costs, the more money it can take to insure it. If you want to keep your auto insurance to a reasonable level, don't buy the top-end model of the car you're looking at. Instead, think carefully about the features you really need. You may find a mid-tier model works well for you -- and fits better into your budget.

2. Be careful with extra safety features

Many new cars today come loaded with built-in safety features, like collision warning and blind spot cameras that are supposed to make it easier to switch lanes. But don't assume these features will lower your insurance costs. Quite the contrary -- because some of these built-ins can be costly to fix, you might spend more on car insurance if you purchase a vehicle that features them. A passenger-side mirror with a built-in safety camera, for example, is apt to cost more to replace than a standard mirror with no camera built in.

3. Shop around for different rates

Auto insurers take different factors into account when determining premiums. These include your driving history, your age, and even your credit score. It's a good idea to shop around for rate quotes if you're buying a new car. You may find one insurance company in your area has a better deal than most.

4. Bundle your auto and homeowners insurance

If you own a home, or are planning to purchase one this year, then you may have an opportunity to save money on both auto and homeowners insurance. Often, if you use the same company for both types of insurance, you'll get a discount on each. This isn't something that's guaranteed, but if you need both homeowners and auto insurance, it pays to see how bundling your policies impacts your rates.

A new car can be expensive enough in its own right. Take these steps to potentially lower your auto insurance costs -- and make vehicle ownership more affordable on a whole.