Insurance companies will be very hesitant to give insurance to vehicles that are attractive to thieves. A car with an 800-horse twin-turbo V-16 engine is ideal for drag racing and offshore boats. Thieves would love to steal this type of vehicle, even if only for the engine.
Insurers have been burned before, paying lots of money for cars like this damaged in high-speed chases. That is, if they were not stolen first. Insurance premiums for these vehicles will certainly be high.
If you are seriously concerned with your premium rates, you are better off choosing a low-mileage minivan, the basic four-cylinder model with steel wheels, cotton upholstery, and red paint job. It says without a doubt – domesticity. No self-respecting car thief would steal a vehicle like this.
It is the type of vehicle driven by a solid citizen who has taken several traffic-rules seminars. One look at this vehicle and an insurance agent will have two words – low risk – tattooed on his brain.
Vehicles in the car thieves’ favorites list will be more expensive to insure than the ones they would not even get caught leaning on to take a leak. Before you go test driving, you could call your insurance agent to ask for quotes on a vehicle you plan to buy. You do not want to find out too late, with that second-hand four-wheel drive SUV’s registration papers already in your safe-deposit box, that insuring it is like buying a new chassis and a set of new wheels.
Insurance companies keep track of statistics on injuries to occupants of vehicles involved in accidents. Their rates on medical and personal injury coverage are based on these figures. The small less-expensive vehicles do not have good discount ratings.
These subcompact models are considered high risks. Despite the higher buying price, you could upgrade your choice to an intermediate-size vehicle. You will be getting lower premiums in the following years, offsetting the higher price you paid for your automobile upfront. That, and you now have a bigger and safer vehicle.
You may be standing on a used-car display lot, unable to quickly make your choice. Take a look again at the list you have made on the quotes you got from several insurers, this could sway your decision towards the model with a lower premium.