Not many of us would actually think about this when we go out to buy a car. In fact this will be the one thing that is furthest away from our thoughts. The things that we will want to do are decide a color, take it for a test ride or take the family along for a ride. None of us will ever think that the make of our car will affect our future insurance rates. But this is very true.
Auto insurance companies admit to the fact that the make and model of the car do have a say when it comes to the insurance rates. Whenever a new car model is released, the auto insurance companies will rate it or give it a symbol. This rating will be based on its initial ex showroom cost and claimed safety features. But then as time goes by and the insurance company starts getting feed back from the field, the rating will be adjusted to accommodate any new findings about the vehicle. Like susceptibility to be involved in a crash, extent of damage accrued for a certain impact case, or the number of fatalities in such vehicles.
It is normal for SUV’s and sports cars to be insured at a higher premium compared to regular sedans. Even small cars or hatchbacks may be insured at a slightly higher premium than a three box sedan. This is because insurance companies consider them to be light and hence unsafe in an accident. SUV’s are highly charged for insurance because they are bound to cause more damage and injury to the other party involved in the accident. And they are also susceptible to roll over accidents. Sports cars are assumed to be cars that are bought by people who want to over speed and hence the high cost for insurance. And also it is very expensive to repair a sports car and the insurance company will have to bear the bill.
Cars are also evaluated based on their safety features. Modern cars with all the standard safety equipment like air bags, anti lock braking system and electronic stability program are not going to be charged a lot of premium. The insurance company knows that a car with all these safety features will be much safer to the occupants and hence there will be minimal injury and hence the company does not need to pay for costly medical bills.
Classic cars are another class of cars when it comes to auto insurance rates. These cars are usually considered to be high risk as they are very expensive to repair. And there is no resale on such cars either. So if you are going for a classic automobile, be prepared to pay from your teeth. But the good thing about this class of cars is that you can actually choose your coverage limit or you can determine your cars value. And obviously you will have to pay for this in the form of premium.
And the purpose of the car is also taken into account while evaluating it. If the car belongs to a business, it will be charged more. But a personal vehicle which is used by a house wife will be very cheap to insure. Taxi’s and delivery vans are the most expensive to insure as they are always on the road.