Insurance Coverage for Our Family

Why Your Car's Make and Model Affect Insurance Rates

28 August 2020

Christian Byrd

Dozens of factors affect auto insurance rates. Your car's make and model are some of them. Below are some of the ways in which a car's make and model affect auto insurance.

1. Cost

The make and model of a car determine its price. An expensive car attracts lower insurance costs compared to an inexpensive one. The insurance company requires more money to replace a stolen luxury car than to replace a stolen subcompact. In addition, expensive cars also attract expensive repairs. Some extremely expensive cars even require special expertise, customized parts, or special equipment to repair. The insurer has to include all these risks in your rates.

2. Typical Drivers

Insurance is all about statistics. The insurance company considers not only your driving history but also the driving history of a typical driver with your car. Thus, the demographic of drivers attracted to your car will affect your rates too. For example, you may be a gentle driver even if you own a sports car, but many owners of sports cars like the thrill of speed. Thus, your sports car might attract higher rates than a family minivan.

3. Size

In case of an accident, a big car is more likely to cause more damages than a smaller car. Two things give rise to the discrepancy. For one, the bigger car has more impact because the impact is a function of speed and mass. Secondly, the bigger car has more surface area than the small car—and every inch can cause damage or injury. Thus, big cars attract high insurance rates.

4. Safety Features

Some cars have more and better safety features than others. Examples include traction control, lane departure warning, automatic braking systems, and even tire-pressure monitors. The safety features reduce the risk of accidents, which lowers the insurance company's risk exposure.

5. Likelihood of Theft

Lastly, thieves are more likely to steal some cars than others. Theft costs insurance companies lots of money since they must compensate for the entire value of the car. Thus, cars with low rates of theft seem to like attracts low insurance rats. In many cases, such cars have good security features and are difficult to steal.

The information above can help you buy a car that won't cost a lot to insure. An auto insurance agent can help you get an insurance quote and answer your other questions about finding affordable car insurance for your car.

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