How New and Used Car Make and Models Affect Car Insurance Quotes
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UPDATED: Jul 16, 2021
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Auto insurance companies have found that the age, make, and model of a vehicle can predict how likely it is that the company will have to pay for an insurance claim. The information used to calculate auto insurance rates is statistical in nature, and there is significant research on how likely each type of vehicle is to be in an accident, how likely a certain type of car is to be stolen, what the average repairs cost for common types of damage, and how likely the vehicle you drive will result in a costly auto insurance claim.
TIP: The age and type of car you drive will impact your car insurance quotes. A new and expensive sports car will cost more to insure than a station wagon because the sports car is more likely to get stolen, have less safety features, or be driven at a speed that can lead to a serious and costly accident. Additionally, the cost to repair the sports car will always be higher.
Factors to Consider
Car insurance quotes will take into account the following aspects of your vehicle:
- The type of vehicle: The type of vehicle can effect how likely the car is to be in a serious accident or require expensive repairs.
- EXAMPLE: A four door family car such as a Ford Taurus or a Nissan Altima would cost less to insure than a Chevy Corvette or even a SUV such as a Tahoe. This comes down to cost of repair and damage each vehicle could cause. The Corvette or SUV traveling 60 miles per hour will likely cause more damage than the Taurus or Atlima at the same speed. Further, a car like the Taurus is typically driven in a more responsible manner than a Corvette would be, and as such the likelihood of an incident is low. Finally, a Corvette is a nicer car that is more attractive to thieves or vandals.
- The age of the vehicle: Buying a vehicle a year or two older may save you money on your car insurance because older cars are generally cheaper to repair or replace in the event of an accident or theft. Consider the same make and model but compare different years. A car a few years older may make a difference in your premium.
- Whether or not the car is financed: New cars that are financed through a bank will require you to carry a certain amount of comprehensive, collision and liability insurance – which means higher premiums. Banks require additional coverage to protect their investment. Purchasing a car outright gives you the opportunity to decrease those levels and save money on your premiums.
- Vehicle Safety: A car that is more safe will be less likely to require a high insurance payout should an accident occur. Safer cars are generally more resistant to damage and better protect the people inside them.
- TIP: Getting plenty of safety features on your vehicle will reduce the insurance cost. Sometimes that comes in car insurance discounts, and sometimes it will be invisibly calculated into the base price. Theft deterrents will save you some money as well.
Compare Car Insurance Quotes
Comparing auto insurance rates prior to purchasing a vehicle could change what type of vehicle you purchase. Each vehicle is rated by insurance companies and is given a numeric symbol that represents how likely it is that the car will lead to a high insurance claim payout. Several factors make up a vehicles symbol-year, make, model, safety features, crash information, weight of vehicle etc.-all calculated ahead of time and designed to give the insurance company an idea of how risky it is to insure the car. If an insurance company has to pay more in claims that it takes in by receiving premiums for a certain type of car, then that car will be considered a higher risk and its owners will have higher auto insurance rates. Years and years of studies and crash test information are used by the insurance industry to determine these symbols for vehicles, and they have become a reliable tool in generating car insurance quotes.
TIP: If you are considering a number of cars, obtain a few car insurance quotes online before you make your purchase could avoid costly insurance premium after your new car purchase.
When you decide to purchase a car, spend a few seconds online or on the phone getting quotes on how much it will cost to insure the vehicles you are considering. Doing so could make the difference in your decision and save you money through out the life of your auto. Click here to visit the Free Advice quote center to get started.
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