The cost of owning a car goes beyond the monthly instalments alone. Various other costs need to be factored into the budget so that this rather expensive investment is maintained and protected. Aside from the instalments, one has to consider the fuel usage, service and maintenance cost, long-term wear and tear, and insurance policies to safeguard you from a potential financial predicament.
Related: What are the best car insurance companies?
Comprehensive insurance is required when purchasing a car on a finance agreement. While the agreement is in place, the bank is the rightful owner of the vehicle and they will require their asset to be covered by a comprehensive policy to safeguard against any losses. Should you fail to have a comprehensive policy in place and the vehicle is written off, you will be held liable for the outstanding amount in your finance agreement, and not have any collateral to exchange for that said amount. Whoops!
With that in mind, how much will you be paying for a BMW? The answer isn't quite so simple, let's take a look at the factors that influence the cost of insurance.
BMW Insurance
The brand of vehicle you choose to insure has less to do with where it is made and more to do with outside influences on that brand. The coverage you get and the costs involved have to do with a risk profile and everyone's risk profile is different.
What is a risk profile?
A risk profile is a profile created for you based on several different factors. Some will have to do with your credit and claim history while others will be based on your lifestyle. This includes where you live, where you work, the roads you travel and how the vehicle is stored at night and during the day. The better the security, the lower your risk profile.
Vehicle risk profiles
Just as you have a risk profile, the vehicle you drive has a risk profile too. Sports cars and performance vehicles pose a higher accident risk while luxury cars are more expensive to repair as most parts and components have to be imported. The risk is attached to the cost to repair or replace the vehicle. Two-doors cars are deemed to be sportier than their 4-door counterparts and are placed in this category as well.
Vehicles that are easier to break into or more prone to being stolen will inherently be a higher risk. This can come from both break-ins and hi-jacking.
Recent surveys have shown the following vehicles to be at higher risk than others:
- VW Polo sedan
- VW Polo hatchback
- Toyota Fortuner
- Toyota Etios
- Toyota Yaris
- Toyota Hilux
- Ford Ranger
While BMW doesn't feature on this list, it is at a higher risk of theft and hi-jacking and falls into the luxury and sports car segment, thus commanding a higher premium for the same cover. Consult an insurance broker to get exact pricing and the best deal that is tailor-made for your specific needs.
