Why did my auto insurance premium go up after I got a new Jeep Cherokee?

"I just traded in my 2009 Dodge Ram in for a 2021 Jeep Cherokee. My insurance went up by $250. My new car has a ton of safety features and I got discounts for them, so I can't figure out why the insurance is so much more expensive.

My new vehicle is financed, while my old one wasn't. Would that have something to do with it?"

Answer
“Every car insurance carrier rates vehicles differently. While your new car has better safety features, one of the factors your insurer looks at is the cost to replace them. Parts for newer vehicles usually cost more to replace than older ones.
Another reason why your insurance rate went up could be the coverage you have. Lenders typically require that financed vehicles carry both comprehensive insurance and collision car insurance.
These coverages are significantly more expensive to carry than liability car insurance. Since most older vehicles only carry liability, it’s likely that this is why your rate increased.
If you’re unhappy with your current rate, you should consider shopping around. You may be able to find a lower rate with a different carrier.
If you want cheap car insurance quotes fast, go to Jerry. A licensed broker that offers end-to-end support, the free Jerry app gathers affordable quotes, helps you switch plans, and even cancels your old policy for you. “
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Emily Maracle
Answered on May 20, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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