Why does the type of car you drive affect your car insurance rates?
All car insurance quotes are not created equal. It is common knowledge that many personal factors are considered by auto insurance companies when giving you a rate quote. Some of the factors are common sense: Have you been in any accidents? How many and how often? What is your driving record? These factors would speak to the risk you pose for the car insurance companies. And most of these we accept without complaint. But why does the type of car you drive affect your car insurance rates?
There are many important factors auto insurance companies consider. The auto insurance company considers the sticker price of your vehicle and the replacement value of the car. The insurance companies also take into consideration how well your vehicle withstands an accident and the cost to repair your vehicle in the event it is in an accident. Safety features are also considered when determining your auto insurance rate. Each of these factors tells an auto insurance company how expensive a claim would be if it were filed on your vehicle. And the more expensive the claim, the higher your auto insurance rates will be.
The most expensive cars to insure are those vehicles that have high claim rates in the event of an accident and those vehicles that are generally driven at higher rates of speed. Vehicles that drivers usually like to speed in are at a higher risk for a collision. The cars that fall into this high risk category are four wheel drive trucks, high performance vehicles, luxury cars, and (not surprisingly) sports cars. The cars with the highest theft rate are also quoted at higher insurance rates. These are factors you may want to take into consideration when purchasing a vehicle if lower insurance rates are important for your budget.