How the Type of Vehicle You Own Can Affect the Price of Car Insurance

If you have decided to purchase a new vehicle, then you noticed that your car insurance cost went up. The year, make, and model of your car can have a large impact on your car insurance premiums. Car insurance companies are using many factors in order to determine the drivers’ car insurance rates. The type of vehicle is one of those factors.

Before buying a new vehicle, it is important to know the following information:

• Newer vehicles cost more to insure. Not only that, but newer vehicles are worth more. For example, a 2019 Honda Civic model is going to worth more than a 2012 Honda Civic model, even if both vehicles are brand-new. For this reason, it’s going to cost more to insure a newer model-year vehicle than it costs to insure an older model-year vehicle.
• Valuable vehicles are expensive to insure. If you own a sports car, a luxury vehicle, or a foreign exotic car, then you are going to pay more on your insurance than you would have paid for owning a smaller domestic vehicle. That’s why your car manufacturer can have a large impact on your insurance premiums.
• Some models have higher theft rates. Generally, the most stolen cars in the US are the most popular and widely used. Models such as Honda Civic, Toyota Camrys, GMC Sierras, or Chevy Silverados are preferred targets for thieves. Usually, these vehicles are targeted for the high resale value of their parts on the black market.
• Certain models are safer. Vehicles that have newer or better safety features are going to cost less to be insured than vehicles that have no safety features. The safety features of a vehicle can prevent the injuries done to the driver and its passengers during a collision. For this reason, the insurance companies will not have to cover expensive medical bills.
• Some vehicles are more prone to accidents. Some car models are more likely to be involved in car accidents than other models. Usually, the models that have higher chances of getting into an accident are more expensive, luxury models such as BMW 4 Series, the BMW X1 Crossover, Land Rovers, Audis, and Jaguars.
• Larger vehicles are more expensive to insure. Bigger and boxier vehicles are more expensive to insure. The reason for that is quite obvious. Larger vehicles can do more damage to other peoples’ property if they get involved in a car crash. If you own a large truck or SUV, then your insurer might charge you extra on your liability coverage.

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