Most people know that some cars are more expensive to insure than others. While some individuals are not certain of the specifics of these price differences, there are some basics to help explain the premium variances. Auto insurance companies look at a large number of factors, including the make, model, and year of the car, to provide their clients with an accurate quote on comprehensive and liability automobile insurance.
The Type of Car
Sports cars and convertibles attract a demographic that often drives faster, leading to higher insurance rates due to an increased accident risk. Likewise, cars that come with a lower price tag are often even more expensive to insure because younger, less experienced drivers are more likely to buy them due to their affordability. If you want to lower your auto insurance costs, it is best to avoid these types of cars.
The Cost of Repairs
Another element auto insurance companies consider when offering liability and comprehensive automobile insurance quotes is how much repairs will cost over time. Cars that require expensive parts or repairs can cost more to insure than a newer, basic car with easy-to-find parts. For instance, hybrid vehicles contain expensive technology that may require high-priced repairs and 4WD vehicles also have complex systems that often need more expensive repairs. Even diesel vehicles and those painted in custom or premium colors are more costly to repair.
Theft Attraction
Every year, a list of the vehicles that are most likely to be stolen is released by various magazines and insurance companies. Cars that can be found on this list will often require higher premiums for auto insurance. Even if you are careful to keep your car protected from thieves, you will pay more for coverage than the average car owner. To reduce your costs due to an increased chance of theft, it is important to do your research before you buy a car.
Age of the Vehicle
The age of a vehicle is an important component in the cost of your comprehensive and liability insurance. Newer cars have more safety features and are less likely to break down, reducing the likelihood of needing repairs. Likewise, older cars have a tendency to break down more often and their parts may be more difficult to find without becoming a significant expense. Some older cars are considered collectibles, making them a greater liability. While insurance companies don’t automatically charge more for a red car versus a blue or black car, there is some level of truth to the idea that the color of your car can affect your insurance premiums. An auto insurance company looks at many factors, including the type of car, how expensive it is to repair, whether it is attractive to thieves, and the age of the vehicle. As you consider the type of car you want in the future, consider all these factors. Making the right choice can significantly reduce or increase your premiums, allowing you to make the best choice for your financial needs. If you are looking for a liability or comprehensive automobile insurance quote, contact us. We can help you understand how the type of car you drive can have an impact on your premiums.