How Does the Car I Own Affect My Insurance Rates?

Vehicles insured is one of the main factors impacting auto insurance rates along with the listed drivers, zip codes and credit scores. The influence of the car is heightened when the driver is already considered riskier. Companies look at the automobile’s make, model, type, engine size, safety features, value, size, accident and insurance ratings when they calculate premiums. At times, details of the car can be so influential as to double the premiums.

When people understand this point, they can plan ahead to ensure they keep the risks under control to avoid very high vehicle insurance costs. For example, families allocate a lower risk and cheap automobile for their teenage driver’s use so that they can buy a liability only policy and avoid paying more than twice premiums for full coverage car insurance. This is a commonly used tactic by many families to manage high premiums due to their children coming driving age.

When a vehicle has a powerful engine, it can take off really fast from standstill, which makes it harder to control and dangerous in the hands of an inexperienced driver. However, this may not be a major problem in the hands of experienced motorists who are well aware of the capabilities of their cars and well prepared to handle them.

Here are the key automobile details considered by insurance companies when they are calculating premium quotes.

Make and Model of a car tells a lot about how it is built, its main characteristics, target market, safety and security features. For example, cars like Volvo and Mercedes are known to be built with safety in mind and cars like, Ford, Fiat, Hyundai, Honda and Renault are known to be modest range brands with relatively cheaper parts and labor costs.

Engine size is the main criteria impacting vehicle insurance rates. The smaller engine automobiles are slower, allowing drivers time to adjust to the road and traffic conditions. A high-performance car can take off so fast that they need an experienced motorist to know the dangers of using them. Otherwise, they can cause serious injuries and damages due to high-speed accidents.

Value of automobiles determines the repair costs and the amount to be paid out when it is totaled. Usually, expensive cars require specialist parts and mechanics, which increase repair costs in case of claims. However, a commonly available automobile will have plenty of parts and most mechanics can repair them. That is why they are fairly cheap to insure.

Security features prevent thieves and if a vehicle is easy to break into and steal, companies naturally charge more money to insure them. Buying an auto with better security features will reduce your rates on the Comprehensive portion of your policy.

Insurance ratings tell you if a vehicle is considered high or low risk. These are established after examining years of crash data. Motorists can quickly check the ratings and see if the vehicle they consider buying will cost them more money to insure or not.

Age is related to the value as well. Generally, older automobiles are cheaper and companies don’t have to pay much money for them even if they are totaled. Actually, they get totaled more often than getting repaired because their value makes them not worth repairing.

Choice of vehicle is even more influential when you live in a high-risk zip code or you or one of the listed drivers are considered high-risk as its multiplier heightens risks and increases premiums. Good drivers with high credit scores can enjoy low car insurance rates even if they drive luxury or performance automobiles because companies can look at their experience and history and can trust them with riskier vehicles.

But some providers may not even quote when you want to insure a teenage driver with a performance car. That is why motorists are advised to get a few quotes for the car they like to buy to make sure they can afford insurance premiums. All they need is a few details about the vehicle like make, model, age and value and it helps if they can get the VIN.

Cars insured can be very influential in premium calculations. Actuaries spend days trying to figure out insurance ratings of every make and model based on how many accidents they are involved in, what sort of injuries and damages people suffered in them, how many of them were stolen last year and what types of drivers go for them. So, motorists, who are concerned about insurance costs and like to keep them under control, can use this readily available information and choose a car suitable for their risk profiles.