Role of your car in determining the auto insurance rates


There are many factors that affect your auto insurance rates. Your age, driving record, marital status, driving experience, credit history, and more all affect your rate. One factor often overlooked is that of the type of vehicle you drive. Here is some information for you on how your vehicle will help determine your auto insurance rates.

Auto insurance companies want to make as much money as possible so they will take every detail of your car into consideration when figuring out what rate to offer to you.

One thing they will look at is your cars age. The older a car is the more likely it is to break down. The older a car is the more chance it has of being a discontinued model. Whether a car is old or a discontinued model, it will be difficult and more expensive to find replacement parts in the event of an accident or a break down.

If a car is old and/or discontinued, a company may decide to just write it off and pay you for the vehicle instead of paying for repairs. Why? It is simple financial logic, if a car is going to cost more to fix then it is actually worth, sell it and get a new one.

On the flip side of this is that if you have a really expensive luxury vehicle, or a foreign made vehicle, your auto insurance will cost a lot more. The parts for these vehicles are really hard to find and really expensive.

Not to mention, luxury cars and sports cars are not reliable in certain weather conditions and have the tendency to go off the road. If they are more accident prone, the rate to insure such a vehicle will be higher than that of a standard American made family vehicle. For example, simple four door, four cylinder vehicles will have a lot lower premium then that beautiful red sports car you have been dreaming about owning one day.

Basically, the lower the price tag of your vehicle, the lower your rates should be; which makes sense. The damage bills on a $100,000 vehicle will cost the insurance companies a lot more then the damage bills on a $15,000 vehicle.

As well, when it comes to higher priced vehicles, they have a higher chance of being stolen because of their higher resale value and higher resale value of their parts. Auto insurance companies will take this into consideration as well when determining your rate.

Certain car brands also have a higher statistical chance of being stolen, even certain colors. Depending on your auto insurance provider, this could play a role as well.

The size and weight of your vehicle will also be a factor. Statistically speaking, lighter vehicles are at less risk for collision and break down then heavier and larger vehicles.

Auto insurance companies will also consider past accident, repair, and damage claims made with that vehicle. If the vehicle shows a distinct pattern of being unreliable or unsafe on the road, you can expect your auto insurance rates to be a lot higher.

All of this information about how your car will affect your auto insurance rates can be a lot to take in, but don’t get overwhelmed by it and go with the cheapest company you find. Do your research and find the lowest rate that has the most coverage. You will be grateful for this decision in the future.