Why Auto Insurance Premiums Vary By Car Make and Model
There are dozens of factors that are considered by car insurance companies when calculating your auto insurance premium. Everything from your age, where you live, and your type of coverage affect how much you pay for car insurance. But one of the most important factors determining your car insurance premium is what type of car you are insuring.
If you’ve ever changed cars, you are well aware that the type of vehicle you drive can make the difference of hundreds if not thousands of dollars per year in insurance premiums, and your car lender or bank will certainly require that you choose a full coverage policy.
Car Value
Probably the most important factor to consider when insuring a car is its value. Generally speaking, the more expensive the car, or the higher its present value, the higher the insurance premium. Why? Because higher-priced cars, like BMWs, Mercedes, Porsches, and Lexus are more expensive to replace in case of a total loss or theft, and more expensive cars tend to be more expensive to repair because of higher quality and more sophisticated parts. A practical, budget car like Toyota, Honda, Nissan, Ford, or Chevy will get you lower, more affordable car insurance rates.
Advanced Safety Features
Some cars come equipped with advanced safety features that reduce the liability of the auto insurance company. For example, most new cars come equipped with air bags that help limit injuries and medical costs. Anti-lock brakes making stopping much easier and reduce accidents by a high percentage. Other safety features, like 4-wheel drive, have a mixed effect.
On the one hand, 4WD provides better road handling and theoretically leads to fewer accidents. On the other hand, the component parts and repairs of 4WD versus 2WD are more expensive to repair when damaged in an auto accident. This is generally why the exact same model of a 2WD Jeep will receive cheaper car insurance quotes than one with 4WD.
Risk of Theft and Vandalism
All cars have a theft risk, but some are higher than others. Law enforcement agencies provide statistics on stolen cars, and the fact is some models are targeted by car thieves more than others. As a result, some models of car will be more expensive to insure than others. You can counter the theft risk by adding anti-theft devices onto your car, such as tracking or alarm systems, which will usually lower your auto insurance premium.
Safety Reputation
For various reasons, some easily explainable and some not, certain car models are safer than others. Statistically speaking, some models of automobile encounter a higher percentage of accidents than others. In some cases, the design of the car is inferior or superior in terms of road handling and impact response. In other cases, the personality of the typical driver of that model impacts the premium. For example, sports cars, in addition to being expensive and costly to repair vehicle, attract a higher risk and more dangerous driver with all the horsepower (hp) they come with.
Some aspects of safety reputation are surprising; SUVs are sometimes viewed as less of a safety risk because they are more visible on the road than sedans. Vans or mini-vans on the other hand are typically driven by responsible mothers carrying children, and therefore are more defensive and safe drivers.
Compare Car Insurance Quotes Online For Vehicles
Whatever car you drive, you should always shop around for the best deals on auto insurance premiums. You can use MyCarInsuranceRates.com to quickly and easily get multiple car insurance quotes from many of the best and cheapest car insurance companies nationwide. So take just a few minutes to find the same or better coverage than you have now at cheaper rates.
Enter your zip code to get free car insurance rate quotes from Nationwide, Allstate, GEICO, Progressive, 21st Century Insurance, Liberty Mutual, State Farm, Farmers Insurance, AAA, AARP, and/or Esurance.
