Insurance rates of any insurance type generally revolve around the policyholder’s likelihood of filing a claim and the dollar amount the insurer would have to disburse or cover. Car insurance applies the same principles but in its own unique ways – including the make and model of the vehicle itself.
Why Does The Type Of Car Matter?
Different vehicles have their own costs of repair or replacement. Cars come in all shapes and sizes, and some can inflict greater damage to other vehicles on the road, leading to more costs for the insurer to cover. Even the costs of the individual parts used in the assembly of a vehicle depend on the make (the brand name, such as Honda, Toyota, and Jeep) and model (brand’s product line, such as Element, Rav-4, and Wrangler).
The more coverage a vehicle demands, the more premiums will cost.
How Does Vehicle Size Affect Rates?
The heavier a vehicle is, the more damage it can do. The more damage that’s done, the more the insurance company would pay. That’s why large vehicles, such as trucks, would generally cost more to insure than a sedan. However, this is in general terms, as vehicle size is just one of the many factors insurers consider when assigning rates.
What About Body Style?
Body style can be very telling, both in how expensive it may be and what the driver’s tendencies are. Coupes, sedans, SUVs, minivans, and trucks are examples of body styles. Coupes are typically sportier, while minivans and sedans are modest. Sports cars, in general, are engineered for speed, which tends to attract drivers with risky driving habits, which is why they cost more to insure. On the other hand, Sedans are on the opposite end of the expense spectrum.
Are Rates Cheaper For New Or Used Cars?
Insurers look at this from the perspective of what would cost less to repair or replace, not longevity. Used cars are cheaper to fix, so insurers charge lower rates to those who drive used vehicles than individuals with new vehicles.
Does The Interior Make A Difference?
If your interiors are more elaborate, it will lead to higher premiums. Bluetooth connectivity, sound systems, sunroofs, and leather seats are examples of what will make rates go up.
What Can I Add To My Vehicle To Lower Premiums?
Adding safety features to any vehicle will help lower insurance costs. This includes anti-theft devices, anti-lock brakes, and dashboard cameras. These lower the chances of claims, which is why insurers award lower costs to those who install these features.
We’ll Get You The Best Insurance For The Vehicle You Have
The type of vehicle you have isn’t the only deciding factor in how much your coverage will cost. The company you choose matters, too, and that’s why Hometown Financial Group will get you the best possible coverage for your vehicle. You’ll have exactly what you need at the lowest price. Call us today at (919) 887-1236.