It’s the type of vehicle you drive, which can influence how much you pay for auto insurance. You might think that car insurance rates are mostly determined by your driving history. … While that’s true, car insurance costs are also influenced by your vehicle’s make and model, as well as other factors.
What makes a car more expensive to insure?
Common causes of overly expensive insurance rates include your age, driving record, credit history, coverage options, what car you drive and where you live. Anything that insurers can link to an increased likelihood that you will be in an accident and file a claim will result in higher car insurance premiums.
Does insurance go up with a nicer car?
You may have heard newer cars cost more to insure. However, the cost of car insurance depends on many factors, including the make and model of the vehicle you’re insuring and your driving record. These factors may influence the cost of insuring a new car.
On what factors car insurance depends?
Your auto insurance premium is affected by many different factors. Some of these you can control and others you cannot.
The Make, Model, and Year of Your Vehicle
- The theft rate of the vehicle.
- The claim rate of the vehicle.
- The safety features of your vehicle.
- The repair or replacement cost of the vehicle.
How does vehicle type affect auto insurance premiums?
Annual premiums by vehicle type
Older or less valuable vehicles are generally much cheaper to repair or replace. Lower total claim cost means less risk to insure you and your vehicle. Typically, the less your car is worth, the less your auto insurance will cost.
Does engine size affect car insurance?
Your vehicle’s engine size is one of the factors insurers use to work out the cost of your premium. Vehicles with lower engine capacities are cheaper to insure than high-powered vehicles. The insurance industry uses a system known as ‘group rating’ to assess the likely insurance costs for different vehicle models.
Which car has the cheapest insurance?
Cheapest cars to insure among popular models
|Rank||Average annual insurance premium||Insurance as % of MSRP|
|1. Subaru Outback||$1,392||5.22|
|2. Jeep Wrangler||$1,416||5.01|
|3. Honda CR-V||$1,439||5.75|
|4. Subaru Forester||$1,465||5.98|