How Your Vehicle Affects Your Insurance Rates
There are a lot of things to consider before buying a car, including gas mileage, the reputation of the brand, seating and storage room, and more. However, before you make a decision, it is also important to consider how your new vehicle will affect your car insurance rates. It should come as no surprise that different types of cars can impact your car insurance quotes as much as your driving record or personal data, but many people still buy cars that turn their affordable auto insurance premiums into huge sums. For this reason, it is often recommended that drivers get quick, online car insurance quotes before buying a car to make sure they can afford the purchase. But to make this process even simpler, read on to learn how the car you’re driving will affect your insurance rates.
Car insurance companies typically base their premiums partially on a vehicle’s price and how much it will cost to repair or replace. As a result, everything from parts and labor to the likelihood of the car being stolen will factor into your insurance rates. To avoid paying high premiums, it is therefore recommended that you check a vehicle’s collision repair costs, theft rates and more with resources like the Highway Data Loss Institute(HDLI), an affiliate of the Insurance Institute for Highway Safety (IIHS), before making a purchase.
If your heart is set on a sports car, you likely know that you will be paying more for your car insurance premiums. However, insurance companies focus on other types of cars as well. For example, the HDLI reports that large vehicles like pickups and sports utility vehicles have the lowest rate of injury claims. While these cars are more likely to be stolen, this low injury claim rate means that certain brands and models are cheaper to insure. In contrast, two-door and four-door small cars not only have the highest injury claim rate, but also the highest collision costs, which can increase your premiums.
An Insurance Company’s Experiences
It may seem unfair, but once an insurance company experiences a number of thefts or collisions for a certain type of vehicle or even driver, they are more likely to charge more for that car model or type of person in the future. For this reason, make sure you shop around and get plenty of online car insurance quotes; you never know who might provide the most affordable insurance.
In the end, it may seem impossible to determine what exactly will cause your insurance premiums to increase or decrease. Because of this, it is important to research the cars you plan to buy, talk to your insurance company, and regularly check online car insurance quotes to see if there is a cheaper option available. By following these steps, you will likely be able to find a plan that not only offers the coverage you need, but does so at a price you can afford. Read more articles like this.