Understand how the type of vehicle you choose impacts your car insurance premium.
Whether you’re looking for your next vehicle or shopping for auto insurance coverage, you should know that the type of car you drive greatly impacts how much you pay for car insurance. Underwriters will want to know what kind of car they are insuring, as well as information about yourself, such as your age, driving history, location, and more. When you’re selecting your next vehicle, it’s wise to think about your potential vehicles will impact your premiums.
In the broadest sense, premium rates are a reflection of how much it would cost to repair or replace your vehicle, should it get damaged or stolen, and how likely the car is to become damaged in the first place. Naturally, more expensive cars will be paired with higher insurance premiums since the parts would cost more to replace. Higher-end cars might also be susceptible to theft, meaning that the chance of filing a claim is high.
The value of a car generally decreases with age but that doesn’t necessarily mean older cars are cheaper to insure. Unfortunately, there is no one answer to this question. Newer cars have many safety features that can make them more resilient, such as emergency brakes and anti-theft devices, whereas some motorists can cut back on comprehensive coverage when they have an older car.
Even if two cars are of the same manufacturer, the models may be completely different and will dictate different premiums. For example, four-door family sedans may rein in a lower insurance premium than it’s coupe counterpart.