Several factors are used by car insurance companies to determine how expensive your policy will be. Some of those factors are things you have no control over, like your age and gender. Other factors are based on the type of car you drive. Insurance companies are interested in nationwide trends that show accident rates and safety rankings of the majority of the cars on the road today. These trends help guide the insurance companies so that they can charge rates that are most likely to cover the possibility of an insurance claim. Cars that are expensive to repair or replace will also earn higher rates from most car insurance companies. The best way to control your insurance costs is to understand how the insurance companies determine the costs of each driver individually. Every insurance company stresses certain risk factors differently, so rates on the same car can vary widely from one company to another.
Expensive Repairs or Replacements
Driving a high-performance luxury car can be expensive at the dealership and the insurance company. When a high priced car is damaged, it can cost much more to make repairs than a more standard car would cost. Insurance rates have to be high enough to cover the cost of repairing or replacing the vehicle based on the real costs of new parts or the overall value of the car. If your car has custom parts or accessories, it could cost you even more to insure. It is important to report any major changes you make to your insurance agent so that your coverage can be adjusted correctly.
Comprehensive History of Collisions
Every state maintains careful records of accident reports. These reports are good sources for insurance companies to use when they need to determine the safety of a certain type of car. Some cars tend to be involved in accidents more often than others, which will make their insurance rates higher. Certain types of cars also tend to break down more often than others, making them more expensive to insure. You can learn about the collision history of your make and model through your insurance agent. If you are shopping for a new car, do some research into which kinds of cars are considered the most reliable and least accident-prone if you want to have lower insurance rates.
Smaller Cars are Most Expensive
The cars that typically have the highest insurance rates are smaller 2-door sports cars. If they have high-performance engines, they will be even more expensive to cover. These cars tempt their drivers to drive faster and more recklessly because of their high powered engines and light weight. When they are involved in an accident, they tend to receive more damage. Smaller cars also present a higher risk for injury during an accident. If the accident occurs at high speed, it can be very expensive for the insurance company to cover.