How Different Kinds of Cars Affect Your Car Insurance Rates

Your car insurance premiums are heavily influenced by the price of your car, as well as the speed, history, and risk of theft for the vehicle.

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There are a lot of factors that impact the price of 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 pieces of criteria that car insurance providers rely on is the type of vehicle that you drive.

You probably don’t think too much about your car impacting your insurance rates, but it really does. In fact, depending on the vehicle you drive, your car can be the biggest influencer in your auto insurance rates. That said, there are a lot of aspects of your car that your auto insurance company looks at when determining your rates.

The price of your vehicle

Car insurance companies make money by charging you for their service. They lose money when you have to use their service, 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 still earn a profit. In other words, the more expensive your car, the more expensive your insurance rates.

Pricey cars are not only more expensive to replace (should they be totaled), but also to repair. Front damage to a Jaguar or a Porsche can cost thousands of dollars more than the same 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 drive 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 needs 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 at which 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 in accidents. Whether it’s a demographic or personality type that buys a certain car, or a car is more commonly used for driving quickly, certain vehicles have dramatically higher accident rates than others.

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 replacement somewhere down the road.

All of these factors ultimately play a role in your car insurance provider determining 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.

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