How Does The Car You Drive Impact Your Auto Insurance Rates?

Finding the best auto insurance rates isn’t always easy.  In fact, there are many factors that can affect your premiums. From how often and how far you drive to where you live and what your driving record is, car insurance premiums are highly variable from person to person.

One factor that can influence your car insurance rates is the kind of car that you are driving.  Before you even decide on which car to buy in the first place, you might want to do a little research ahead of time to see what your favorite car might cost you in terms of auto insurance premiums.

Here are a few examples of how what kind of car you drive impacts your auto insurance rates:

  • Year

How old is the car you want to insure? Sometimes, insurance companies will give you a “new vehicle” discount on a new model. If you have a very old car, you probably will still end up with a lower rate simply because insurers will assume you don’t plan on repairing the car if it gets totaled, since the cost to repair the car would be more than it’s worth.

  • Make & Model

Who made the car may tell an insurer a little bit about value.  Is it a reliable manufacturer with inexpensive and easy to come by parts? Or, does the manufacturer have a record of less reliable vehicles, or are the parts and labor typically pricey for this kind of vehicle?

Additionally, the model of the car can also impact your premiums.  Is it a sportier model with a big engine?  Bigger engines and faster cars are linked to an increased risk in crashes due to reckless driving, so if you try to insure a car with these features, your premiums may be higher to account for this statistic. If you’re trying to insure a family sedan, the insurance company may assume you drive more cautiously and keep your rates down.

Insurance companies also take into consideration crash test ratings, reliability ratings, and other driver/passenger protection features on the vehicle. If you are trying to insure a car that’s highly rated in various driver/passenger protection features, you’re going to end up with lower premiums than if you try to insure a car with lower driver/passenger protection ratings.

  • Safety Features

Does your car have airbags or a car alarm?  Car insurance companies like to see these types of features which can result in lower premiums if you select the right coverage.

  • Price of the car

What you paid for the car can also impact your car insurance premiums. It’s a simple matter of math in this case:  the more expensive your car, the more expensive your premiums. Why? Well, the more expensive your car is, the more expensive parts and labor repair costs will be on the vehicle.

While these are just some of the ways the type of car you drive impacts your car insurance rates, there may be other factors that your insurance company takes into consideration. While it’s unlikely you will go out and buy a new car just to get lower premiums, knowing this information before you buy next time could save you a bundle on your car insurance.  In the meantime, if you’re looking to lower your auto insurance premiums on your current vehicle, don’t hesitate to shop around for the best deal for you.

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