In our previous article, we spoke about demographic factors that affect your car insurance rates. Now, it’s time to look at car-related factors.
If you weren’t aware of this until now, then now that the car you drive has a significant impact on your rates. It’s because some cars are more likely to be stolen, because they cost more to repair or because they are not as safe as others.
Car-related factors that affect car insurance rates
1. The age of your car
This is one of the most important car-related factors that influence your rates. Although the repair costs are the same for both older and newer cars, if an older car gets totaled in an accident, it’s unlikely that its owner will try to repair it. Sometimes, the cost of repairs is actually greater than the cost of a new car. Therefore, the owner will probably choose to replace it.
Since the cost to replace a new car is higher than that of an older one, newer cars come with higher rates
2. The size of your vehicle
Larger cars are safer than smaller ones. That’s why big cars, with good safety ratings, usually come with lower premiums than lower cars with the same ratings.
3. Your car’s safety rating
Driving a car with a high safety rating means that, in the event of an accident, there’s a smaller chance of you being hurt. This translates into lower medical bills and, as a result, lower rates.
You can make your car safer by adding extra airbags or other safety features. Insurers like this and will give you discounts if you do it.
4. The value of your car
Expensive cars come with expensive parts and huge repair costs. Not only that, but the chances of them being stolen are also greater than if the cars were older or a lot cheaper. This doesn’t mean that you shouldn’t buy the car that you want. Adding extra safety features such as car alarms or LoJacks can help lower the rates.