Does the Make and Model of the Car Affect Insurance Rates?
Did you know that insurance companies determine your premiums on more than just your driving record and age? Yes, these two factors play a big role, but so does the make and model of your car. No matter your age or how safe of a driver you are, some cars cost more than others to insure.
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The Type of Car Plays a Role
First, let’s put the make and model of your car aside. Certain cars just have a larger risk of causing more damage on the road. This makes the premiums on these vehicles higher. In general, bigger cars cause more damage. This doesn’t pertain to the damage to your car, but the damage your car can cause to other people and property.
The more damage your car can cause, the more it will cost the insurance company. You have to carry liability insurance – it’s the law. This puts your insurance company at risk of expensive claims if you drive a big car.
The Value of Your Car Matters
If you drive a high priced (highly valued) car, it will cost more to insure it. Collision and comprehensive insurance cover damage to your car. The more your car is worth, the higher your premiums become. Insurance companies need to be realistic about how much it would cost to completely replace your car, should you have a total loss.
Typically, luxury foreign vehicles cost more to insure than less valuable domestic vehicles. Of course, there are luxury domestic cars and low-end foreign cars. Asking your insurance agent about the general premiums for the type of car you want to buy can help you make a decision. If rates are already high on a specific type of car, you may want to choose a different brand to keep your baseline premiums lower.
The Model of the Car Makes a Difference
Now, we said above that certain brands are just more expensive to insure than others, but that doesn’t mean every model will have the same premiums. Typically, each car has different models, some of which are sportier than others. Even if they aren’t sportier, they may have other features that make the car more valuable or riskier to insure. If you are interested in a specific model, make sure you ask specifically about that model when inquiring about insurance premiums.
The Safety Features can Lower Premiums
As technology gets better and better, cars have more safety features. Insurance companies love it. The more safety features a car has, the less risk it poses to the insurance company. Insurance companies often use accident data to determine the premiums for each car. If a certain model has specific safety features in place that keep the occupants and the car from experiencing less damage, the baseline premiums may be lower.
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Theft Records can Play a Role
Insurance companies also use theft records to determine the riskiness of your vehicle. If you own a car that frequently gets stolen, your premiums may be high just for that reason. Any safety features, such as anti-theft devices you can put in place may help, but the premiums may still be high for your comprehensive insurance coverage.
You Play a Role Too
All of these factors set up the ‘baseline premium’ for your specific car. Once you know that amount, you have to factor in your own qualifying factors. Insurance companies look at:
- Your age
- The number of drivers on the car
- The miles you drive
- The area you live
- Your driving record
These are the main factors insurance companies consider, but of course, there are many more. If you have a bad driving record and are in your teens, for example, your rates will be much higher than a 40-year old with a great driving record.
Keep these factors in mind as you shop for a car. Finding a car with the lowest insurance premiums can save you a significant amount of money. In some cases, it’s as easy as choosing a different model within the same car brand. Some brands, however, are just more expensive to insure.
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