Many people assume their auto insurance rate is based solely on the statistics of the driver. For example, the age and driving record of the person obtaining the car insurance controls the rate. Although these items are factors, they are not the only things taken into consideration. The auto insurance rate also incorporates information about the car. Therefore, when buying a car you should consider how your vehicle choice will impact your insurance rate.
Type of Car
Cars that seem similar can have significantly different insurance rates. Let’s examine some factors that are incorporated into determining the insurance rate.
A higher priced car is typically more expensive to insure than a less expensive car. This is because the insurance company will need to pay out the market value if the car is stolen or totaled.
A car with expensive repair parts will have a higher insurance premium. If an accident occurs, it will cost more to replace the specialized parts.
Safety features decrease the insurance premium. They prevent accidents and minimize injury. Therefore, the resulting insurance policy pay out will be lower. Selecting a car with safety features may save you money in insurance costs. Examples of safety features include:
- Blind spot detection system
- Lane-departure warning system
- Rearview camera
- Anti-theft system
- Stolen vehicle recovery system
Some vehicles attract safe drivers and therefore have a lower insurance rate. People who buy minivans generally have fewer accidents than those driving a sports vehicle. Therefore, the body style of the vehicle can make a difference in the insurance cost.
A 6-cylinder engine will have a higher insurance cost than a 4-cylinder engine. The cost to repair the higher horsepower vehicle is more. Therefore, if two cars are identical, with the exception of the engine, you will still observe a difference in the insurance rate for the two vehicles.
A heavier car will cause more damage in an accident than a light car. As a result, the car insurance company may have to pay out more money to the other driver for repairs and injuries. So, a heavier car will cost more to insure.
Likely to be Stolen
Certain cars are more likely to be stolen than others. Either they are easier to steal, because they don’t have anti-theft features, or they are especially desirable by car thieves. Since your car insurance company will have to pay you if your car is stolen, they charge your more to insure a car that has a higher probability of being stolen. There are also other factors that influence your car insurance coverage-Check out our other factors.
Type of Coverage
When you purchase a new car, it is a good idea to review your insurance policy. If you were driving a 10-year-old clunker, you may have not bothered with comprehensive or collision insurance because the car was not worth it. Now, with a new car, it makes sense to increase your insurance coverage.
Before you buy a new car, it is wise to find out what the insurance cost will be. You can factor that into the overall cost of the car. You will need to be able to make car payments and afford your insurance premium. If you buy a sports car with a high premium, it may not be within your budget. Instead, you may find an alternative car that you enjoy and can afford.
Unfortunately, over 200,000 accidents occur each year in Florida. Even the best drivers find themselves in an accident due to the mistakes of other drivers on the road. Having appropriate insurance coverage is important. Contact us to learn more about how we can provide you the car insurance you need for your personal situation.
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.