How Different Kinds of Cars Affect Your Car Insurance Rates
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There are a lot of factors that impact your car insurance rates. From your location to your driving history, auto insurance companies look at a multitude of information to come up with premiums that are accurate and fair.
One of the criteria that car insurance providers rely on is the type of vehicle that you drive. In fact, depending on the vehicle you drive, your car can be the biggest influencer on your auto insurance rates.
The Price of Your Vehicle
Car insurance companies make money by charging you for their services. They lose money when you have to use their services and they end up paying for your vehicle to be repaired or replaced. It follows, then, that the more money it costs to repair or replace your vehicle, the more money your provider has to charge you in order to earn a profit. In other words, the more expensive your car, the more expensive your insurance rates.
Front damage to a Jaguar or a Porsche can cost thousands of dollars more than the same kind of damage to a Kia or Honda. Insurance companies have to take this into consideration when determining how much to charge you.
How Fast Your Car Can Go
Even if your car is relatively cheap, if it can go fast, the insurance might not be as affordable. Drivers of sports cars are more likely to operate their vehicles at high speeds, which increases the odds of an accident occurring.
Any car that is routinely used for more than just basic transportation will likely carry a slightly higher insurance tag. In other words, a $20,000 convertible will probably cost a bit more to insure than a sedan or SUV of the same price.
The Possibility of Theft
It would seem to follow, then, that it’s very affordable to insure a basic, simple, cheap vehicle. However, that’s not always the case. Very common vehicles are more likely to be stolen because thieves have a better chance of getting away with stealing a common, nondescript car. The frequency with which cars of your make and model are stolen is taken into account when car insurance companies calculate your rates.
The History of Your Make and Model
Auto insurance companies keep track of how frequently different makes and models are involved in accidents. Certain vehicles have dramatically higher accident rates than others, perhaps because they are popular with a certain demographic or personality type, or they are more commonly used for driving quickly.
Not surprisingly, these vehicles tend to carry higher insurance premiums, as auto insurance companies have to make up for the fact that the car is more likely to end up needing repairs or a replacement somewhere down the road.
All of these factors ultimately play a role when your car insurance provider determines how much to charge you. You shouldn’t let this keep you from purchasing the sports car of your dreams, but it’s certainly something to keep in the back of your mind when shopping for a new car.