If Cars Could Talk: What Cars Say About Their Drivers, and How it Impacts Insurance Costs

Blog

If Cars Could Talk: What Cars Say About Their Drivers, and How it Impacts Insurance Costs on avanteinsurance.com

More expensive vehicles and those more likely to be stolen often cost more to insure

When it comes to determining your car insurance rate, auto insurers take a variety of factors into account– and one of the most important factors is the make and model of the car itself. There are few hard-and-fast rules about which types of vehicles are more expensive than others, but a few generalizations can often be made. These include:

  • • Cars are usually less expensive to insure than SUVs
  • • Expensive vehicles usually cost more to insure than less expensive ones
  • • Cars more likely to be stolen are more expensive to insure
  • • Cars with great safety features cost less to insure than those without them

Despite these generalizations, there are always exceptions– and that’s why you must do comprehensive research on potential insurance rates for the specific make and model of car you want to buy, lease, or insure. However, understanding the basics about how vehicle choice can affect insurance rates can still help make you a smarter driver, car owner, and auto insurance buyer– and that’s never a bad thing.

When it comes to car insurance pricing, specific brands and models matter

If you want to know the least (and most) expensive cars to insure for each year (and model year), all the information you want is simply a few clicks away. Major insurers, financial blogs, newspapers, magazines, and other sources publish detailed comparisons one or more times a year to update consumers about changing prices. In 2016, some of the cheapest cars to insure included the Honda Odyssey, the Dodge Grand Caravan, and the Toyota Tacoma– each which cost an average of a little over $1000/year to insure. In comparison, 2016’s most expensive cars to insure include the Dodge Viper GT, the Mercedes-Benz SL65 AMG, and the Mercedes-Benz S600 each cost between $3,500 and $4,000/year to insure.

Makes and models with substandard safety features often increase insurance rates for drivers

While it might seem surprising, newer cars aren’t necessarily more expensive to insure than older ones– and in many cases, car safety features (or the lack thereof) is the reason. With car safety tech changing so quickly, even models only three to four years old may not have the same safety features as a newer vehicle. These features can often make a big difference when it comes to road safety and accident prevention. For example, newer technological features like rollover control systems have significantly decreased SUV insurance rates, bringing costs in more line with sedans, coupes, and other commonly driven types of vehicles.

Drivers of cars most likely to be stolen often face higher insurance rates, too

Recent statistics indicate that close to 700,000 cars are stolen each year in the U.S., so it shouldn’t be a surprise that the nature of these thefts (i.e. which kinds of cars are stolen) greatly impacts car insurance rates. Unfortunately for the owners of high theft-risk vehicles, that means an increase in car insurance rates to hedge the potential risk of theft. But which vehicles are the most likely to get stolen? Hint: it’s not the brand-new ones.

The most commonly stolen cars in 2012 weren’t brand new– instead, they were cars between model 1991 and 1999. While new cars may have a higher resale value than their used counterparts, newer vehicles often have far more advanced (and often GPS-enabled) theft tracking systems, which can deter all but the most committed of thieves. In addition, it’s often easier to strip down older vehicles to re-sell their parts, which is often the end goal of many car-thieving criminals.

Surprisingly, classic cars cost an average of 40% less to insure when compared to a typical vehicle

While cars that are a few years old may end up being more expensive to insure due to theft concerns, cars that are 40, 50, or even 60 years old might get you a bargain when it comes to auto insurance. In fact, per statistics from Progressive, classic cars, on average, cost 40% less to insure than a regular vehicle. This can likely be attributed to several factors, including the fact that classic cars are usually driven far less (and far more carefully) than regular vehicles and that classic car owners tend to be better drivers who know significantly more about car safety and maintenance.

Do your research before leasing or purchasing a vehicle or buying a new car insurance policy

If you’re planning to make a significant transaction involving auto insurance, such as purchasing or leasing a car, or switching out your current car insurance policy for a different one, it pays to be prepared. Depending on your driving record, your credit score, the make, year, and model of the car you drive, among other factors, you may be paying a significant amount each month in insurance costs. However, there are often unexpected ways to save on insurance costs, including discounts and rebates sometimes offered under special circumstances.

Therefore, to make sure you’re getting the best deal, do your research before buying anything and, if possible, try to purchase vehicles with reasonable insurance rates. Doing this will save you a ton of money (and a lot of headaches) for as long as you own them.

To learn more about how to save on you or your family’s car insurance rates, contact Avante Insurance today for a free consultation.