Can Your Car Be A Factor For How Much You'll Pay For Insurance?
When shopping for car insurance, you need to understand how the premiums are set. Insurance agents consider a variety of factors when they set these rates. Each aspect can significantly impact the amount you pay each month.
This post discusses some of the most crucial car factors that influence auto insurance premiums.
Your Car's Make and Model
The type of car you drive is one of the most important factors that will determine your auto insurance rates. Luxury cars and sports cars are usually more expensive to insure than economy cars or sedans.
For example, sports cars are more likely to be involved in accidents due to their high speeds and aggressive driving capabilities.
Luxury cars also tend to have more expensive repairs. If such a car is damaged in an accident, it will likely cost more to fix. A luxury car will also be costlier to replace if it is totaled in an accident. In addition, both luxury vehicles and sports cars are more likely to be stolen because of their high resale value.
These reasons are basically why auto insurance rates for high-performance cars are usually higher than other types of vehicles. So if you want the cheapest auto insurance, choose a car that is considered "safe."
Insurance agents also look at a variety of data points when they assign safety ratings to cars, including the frequency of accidents, the severity of injuries in accidents, and the amount of damage caused by collisions. Cars that score poorly on these measures will usually have higher insurance rates.
Car Safety Mechanisms and Security Devices
Some auto insurance companies also offer discounts if your car has certain enhancements that they deem useful. For example, your insurer can offer discounts to drivers who have cars with multiple airbags, daytime running lights, and other safety features.
Insurers make such cars cheaper to insure because they are less likely to be involved in a serious accident. In addition, things like airbags and seatbelts can reduce the severity of injuries in an accident, which also translates to lower premiums.
Some security devices make your car safer (and cheaper to insure). Most auto insurance companies will set lower premiums for cars that have alarms, GPS tracking systems, or other anti-theft devices. These devices make it less likely that your car will be stolen –– and if it is, the police are more likely to recover the vehicle.
If you want to save money on auto insurance, ask your insurance agent about discounts for safety features and security devices. These additions can help lower your rates significantly.
So if you're in the market for a new car, buy one with enhanced safety features and security systems. But if you already own a car without these features, consider adding them yourself so you can enjoy lower insurance premiums.
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