How Your Vehicle Make and Model can Influence Insurance Policy

To calculate how much you’ll have to pay for auto insurance, insurance firms consider a wide range of variables. Together with where you live and how much you drive, individual characteristics like your age and driving record might affect your premium. Yet your insurance rate can also be significantly influenced by the make and type of your car.

Due to their high incidence of accidents, theft, and insurance claims, some car makes and models frequently have higher insurance premiums. Auto insurance prices are determined by personal and vehicle information. The make and model of your automobile affect how much you spend on auto insurance.

Whether you’re looking to purchase a new or used car or checking your policy to see if you can lower your rates, knowing your car’s make and model impacts auto insurance rates may help you make an informed decision. It is advised to compare auto insurance rates by vehicle.

Research potential insurance costs before purchasing a new set of wheels to avoid any unpleasant surprises later.

The Meaning of Make and Model

The “make” of an automobile refers to its brand or producer, such as Honda or Subaru. The three brands, Cadillac, Chevrolet, and GMC, are all produced by General Motors.

A specific product created by a producer is called a “model.” Toyota, for example, offers a range of models, such as the Camry, Prius, and Tacoma.

The model year of a car refers to the year that a particular variation of the model is produced. Thus, you could be interested in a Toyota Prius from the 2021 model year (model). Even though they have similar names, products like Jeep Grand Cherokee Laredo and Jeep Grand Cherokee Limited are considered different models.

Vehicles’ features affect auto insurance costs, which vary from model to model.

How the Type and Model of an Automobile Affects Car Insurance

Get a few insurance estimates before deciding whether to buy a new car, and have your eye on a specific brand and model. Your car’s make and model may influence your insurance rate based on several criteria.

Even if two drivers have identical driving records and the same make and model of the automobile, that doesn’t necessarily imply they will pay the same for auto insurance coverage. Several aspects of the vehicle will also affect car insurance premiums and the kind of coverage chosen.

The vehicle’s age

Generally speaking, newer cars cost more than older ones. For instance, a brand-new 2022 Ford F-150 would cost far more than a 2010 Ford Fusion. The insurance often costs more for newer cars. Based on the cost of replacing the car. Older or collectible automobiles are a few exceptions to that rule. The year the car was built has just as much to do with the premium as the actual make and model.

Kind and Size of Vehicles

Insurance companies frequently view little, sporty cars as being more dangerous. Because the insurer could have to cover liability and collision claims if you cause an accident, you might have to pay high rates for all auto coverages.

Your insurance cost may also increase if you purchase a big car. For instance, an insurer would charge a high premium for a big, heavy SUV because of the potential harm it could cause in the event of a collision. 

Also, insurers frequently charge higher rates for makes and models with a history of suffering significant losses in various claims. While some typical cars present little danger, others have a history of causing bigger losses. You must conduct some studies to determine the insurance risk associated with a car. For example, the Insurance Institute for Highway Safety states:

  • The Chevy Malibu has a history of above-average losses for collision, comprehensive, and property damage but average losses for bodily injury, medical expenses, and personal injury claims.
  • The Nissan Altima has a history of having significant losses due to property damage but average losses due to collision, comprehensive, medical payments, and personal injury claims.
  • Drivers of Subaru Legacy 4WDs for collision, property damage, physical injury, and medical expenses make fewer claims than average.

Body Fashion

Your cost of auto insurance may also depend on the car’s body design. Coupe, sedan, SUV, minivan, and truck body types are available. Because insurers frequently link sports models to riskier driving practices and an increased risk of accidents, sporty coupe body types typically cost more to insure than a sedan or minivan.

Protection Measures

Because certain safety features minimize the likelihood of accidents and shield drivers from costly damages in the event of collisions, car insurance companies often charge significantly lower premiums for vehicles with these features. Insurance companies consider security features, including anti-lock brakes, electronic stability control, and theft prevention systems.

Trimming level

Driving can be made more pleasurable and convenient by features like sunroofs, leather interiors, sound systems, Bluetooth, and internet access, but they may also raise the cost of insurance. These options are normally available when you upgrade to a luxury or sport trim level, while they may be accessible in the standard trim style. There are typically a variety of sport or luxury trim models available, giving you a choice to tailor your car to your preferences and needs while raising the cost of maintenance and replacement. In light of this, simple vehicles without extra amenities can be less expensive to insure.

Other Factors That Affect Auto Insurance

Other elements that influence your car insurance premium, in addition to the make and model, are as follows:

Age: Drivers under 25 are frequently thought to be riskier than more experienced drivers and are, therefore, subject to higher premiums.

Location: Car insurance premiums are often higher for residents of locations with high rates of accidents, auto theft, and vandalism. In addition, if you park on the street instead of in a secure garage, you might also have to pay a larger charge.

Credit history: When setting your insurance rate, some carriers take into account a credit-based score. Due to the insurers’ perception that these drivers are more likely to file insurance claims, they frequently pay a higher premium for auto insurance. Yet, several states have laws against this practice.

Driving history: Rates for auto insurance can increase if you have a history of traffic violations, including speeding tickets and accidents.

Mileage: You will likely make an auto insurance claim increase as you drive more. Drivers who only occasionally use their automobiles for pleasure excursions frequently pay cheaper premiums, so that they might think about usage-based insurance.

Varieties and quantities of coverage: State-mandated coverages are generally less expensive for car owners to obtain than complete coverage. Your deductibles may have an impact on the premium you pay. Raising your deductibles can lower insurance premiums, but you’ll have to pay more out of pocket if you have an accident.

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