The
type of car you drive is one of the things that determines your auto
insurance rates. Here are some of the specific factors that make some
cars attract higher or lower premiums than others.
Safety
Record
Some
cars are historically safer than others, and the safer cars attract
low auto insurance rates. Various agencies, such as the National
Highway Traffic Safety Administration (NHTSA) and the Insurance
Institute for Highway Safety (IIHS), also review and rate cars based
on the car's safety parameters.
Cars
that have safe histories and high safety ratings attract low auto
insurance rates, and the converse is true. If a car has a poor safety
record or rating, the car's owners tend to make numerous
accident-related claims, which increase coverage costs and hence
premiums.
Type
of Driver
Some
drivers tend to be safer than others. For example, married adults
(particularly those with families) tend to drive safer than young,
unmarried drivers. At the same time, the safer drivers tend to prefer
cars that unsafe drivers shun.
For
example, married adults may flock towards minivans while young and
single drivers opt for speedier cars. Insurance companies analyze
these ownership trends and reward those who own the safer cars with
low auto insurance rates. On the other hand, cars that attract
riskier drivers end up with high insurance rates.
Purchase
Cost
If
you have comprehensive insurance and total a $100,000 car, the
insurance company has to write a $100,000 check to compensate you for
the car. If you total or lose a $25,000 car, that is the figure that
will appear on your compensation check. Since the expensive car has
the potential to cost the carrier more money, the carrier has no
option but to raise its premiums.
Repair
Cost
Some
cars have expensive parts or require specialist mechanics, which
raises the cars' repair costs. On the other hand, some cars have
parts that you can find in any scrap yard and don't require
specialists to fix. If two cars cost the same to purchase but one is
more expensive to repair than the other, then the expensive-to-repair
car will attract higher rates.
Engine
Size or Horsepower
The
engine size or horsepower of a car determines how powerful a car is.
Other factors constant, a powerful car is faster than a less powerful
car. The more powerful the car, the more damage it can cause, and the
more heavy-footed drivers are likely to choose the car. Auto insurers
know all these, which is why cars with big engines attract high
coverage rates.
Claims
History
The
claims history of a make and model of a car indicates how likely a
car is to trigger a claim. If model X has 100 claims within a year
and model Y has 60 claims over the same period, then a model X owner
is more likely to file a claim than the owner of a model Y. As such,
the model X will attract higher rates than model Y.
Theft
Rates
Statistics
show that thieves don't target cars at the same rate; some cars
attract more thieves than other cars. Cars that have numerous buyers,
cars that are easy to steal, and cars that criminals can strip for
parts are some of the ones that thieves target. Whatever the reason a
car attracts more thieves than other cars, the thief-magnet car will
attract higher premiums.
Where
does your car fall if you consider the above factors? The good news
is that your car is not the only thing that determines your auto
insurance rates; many other factors come into play. Harr &
Associates Insurance, Inc., can help you understand and manage these
factors. Contact
us today
so we can help you buy the right coverage for your car at a
reasonable rate.
