Not all automobiles are created equally. Different models have different virtues – some autos have high safety ratings, terrific mpgs, while others boast a lot of horsepower and towing capacity. And there are some types of cars that have a less tangible, but equally meaningful quality known as the “cool” factor.
But what exactly determines how expensive it is to insure a particular type of car? Why do some car models face higher premiums than others?
Get car insurance quotes online today!
Sticker Price
This is a sort of a no-brainer, but obviously if it costs more to purchase a vehicle, than it will be more expensive to insure it. Car insurance companies must calculate what will it cost to replace/repair a certain vehicle -- and this is reflected in the premiums you must pay. So, if you want to want to own an upscale, luxury BMW you are going to pay extra, and not just in the sticker price. The insurance rates will be higher during the entire time you own the vehicle, then by comparison, had you bought a Honda Civic.
Safety Features
If car comes equipped with safety features, your insurance rate will go down. Features such as airbags (both passenger and driver), over-the-should seat belts, and anti-lock brakes are what insurance companies look for. If there happens to be an accident, these devices will reduce the severity of injury, thus reducing the amount of any medical injury claims.
Most of these features are now standard in new automobiles. However, it is important to realize that if you are seeking to insure an older vehicle that doesn’t come equipped with these standard safety features, your rates will be higher.
4WD vs. 2WD
Four-wheel-drive (4WD) is a more complex operating system with more moving parts than the standard two-wheel-drive (2WD). In this case, greater complexity leads to an increase in insurance premiums. The logic here follows a familiar pattern; the higher the price tag for replacement parts, the more the vehicle will cost to insure. 4WD is more expensive to service and repair than 2WD. This is partially why a 4WD Jeep might cost more to insure than your average 2WD passenger car.
Likelihood of Theft
Some automobiles have proven to be more alluring to car thieves. There are number of reasons for this. The car may be simply easier to rip-off, it may be worth quite a bit of money, or it could have sought-after parts. Whatever the case is, insurance companies must account for this theft potential when determining your car insurance premium. There is a great risk involved and chance for significant loss, and insurance companies turn to statistics and hard data to determine the likelihood your auto will be stolen. The higher the chance, the more you pay.
Basically, if your vehicle happens to rank high on a car thief’s wish list, plan on handing over more cash to the insurance company.
Get car insurance quotes online today!
Likelihood Of An Accident
Did you know that certain models of cars are more likely to be involved in an accident than others? Statistics prove it. The cars aren’t driving themselves, so how can this be? Why should it make a difference what type of vehicle it is? It’s the owner who matters, right?
Well, obviously the person who is driving the car is what matters the most, but also certain cars have to proven to be “safer” than others.
SPORTS CARS
These cars are designed to go fast. Very fast. And the faster the car zooms down the road, the higher probability it will be in an accident. Excessive speeds reduce your reaction time and ability to avoid a crash. Because of this, sports cars are more frequently involved in fender benders than other types of autos.
Many owners put the extra “oomph” that comes with a sports car to good use, and insurance companies are very aware of this fact (remember, they have lots of stats and data). So, the insurance companies reward sports cars with higher rates.
Smaller Cars vs. SUVs
This may surprise some, but smaller cars can be more risky to drive than large SUVs. It has to do with the fact smaller automobiles are less visible on the road. This makes these cars more prone to be involved in crashes. So, in this respect, it is cheaper to drive a SUV than a small car – however, this still doesn’t apply to filling up at the gas pump.
The Type Of Driver
The kind of car you drive says a lot about your personality. At least, that is what car insurance companies believe. Certain car models are more favored by “aggressive” drivers. These are drivers who have a style that is more likely to get them involved in an accident.
High-powered muscle cars, for example, might garner higher rates. These cars pack a lot of mojo, and the people who drive them are notorious for their lead foots. Sports cars (there they are again) might also be put in this aggressive driver-friendly category. The types of people who drive these vehicles are not people with a more relaxed style. Now, there are definitely exceptions to this assumption. But insurance companies don’t base their rates on exceptions; they prefer studies and facts.
There is a positive flip side to this equation. Other car models are preferred by “safer” drivers. For insurance companies, this means drivers who are less likely to file a claim. A good example of this might be a Ford Escort. This is not a flashy vehicle, and the people who drive them usually aren’t either.
Remember, there are many factors that go into determining the cost of your car insurance premium. What type of vehicle you drive is only one part – albeit, a very important one. The best way of finding the car insurance quotes is to get multiple online quotes here at Cheap Quotes Car Insurance.