Why Insurance Cost Varies Among Different Vehicles
Along with your own driving record, your ZIP code, and the demographics of the drivers in your household, the make and model of your vehicle can have a big impact on your insurance bill. Of all of those factors, the type of vehicle you put in your garage is the only variable you can change immediately.
The choice of the car itself is going to affect, in particular, what you will spend for comprehensive and collision. That makes shopping around for insurance, as you shop around for that car, a good move.
Why some cost more
Collision damage costs are one of the main factors in differentiating the cost of insuring one type of car over another. To a lesser extent, you also want to look at how attractive the car is to thieves.
Vehicles that top the insurance-cost list tend to be either high horsepower, high dollar or expensive to repair. An expensive choice: "Sporty cars that are favored by young drivers who are risky drivers, so they are crashing a lot."
Higher horsepower means the driver is more likely to be going faster and getting into more accidents. That will send insurance rates up for everyone who owns a similar car. Many of the vehicles that are expensive to insure share a common problem &ellip; and that is horsepower
Size Does Matter
Some think that a smaller, more maneuverable car is able to outrun trouble and avoid crashes. When you look at the statistics and insurance claims, small sports cars tend to be in more crashes. Adding to the problem: "They tend to be engaged in faster driving."
From a statistical standpoint, the safest models tend to be the full-sized family-sedan-type cars.
A few other special circumstances can also send rates through the roof. If a car is a popular target for thieves, your insurance company might charge you higher rates to keep it covered.
If you're driving a high-priced car, it will likely cost more to fix after a collision. As a result, your insurance bill will go up when you add it to the policy. Likewise, some luxury or high-end cars feature aluminum body panels that are more expensive to fix or replace than sheet metal.
One other factor to consider: How much damage is your vehicle likely to inflict in a crash?
SUV (Sport Utility Vehicles)
As sport utility vehicles have become more popular, insurance companies have had to study and factor that issue into premiums. As a result, if you drive an SUV, your liability premium (which covers damage to other vehicles), could be higher because of the increased damage a vehicle of that size can cause in an accident
But a high rate is a red flag to ask a few questions. For instance, if a car has a lot of horsepower and is involved in a lot of crashes, that can also send insurance rates up, even if the car itself is relatively inexpensive.
So if you're getting ready to buy your teen that dream model and the insurance rate comes back sky-high, that may be a tip that it's time to search for another make and model.
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