When youï¿½re buying a vehicle, there are many aspects to consider ï¿½ comfort, fuel economy, technological features. ï¿½ but one consideration that is often overlooked is potential auto insurance rates. And this oversight could be a very costly one, depending on the vehicle.
There are a variety of factors that go into determining a car insurance premium, even when it comes down to the vehicle type itself.
Size ï¿½ Itï¿½s a common misconception that smaller cars often have lower insurance rates due to the fact that they have better maneuverability and ability to avoid a potential accident. In actuality, the opposite is true.
ï¿½Statistics prove smaller, sportier cars are driven at higher rates of speed by younger, riskier drivers. Because theyï¿½re involved in more accidents, theyï¿½re more expensive to insure,ï¿½ reports Kelly Blue Bookï¿½s website KBB.com.
Does that mean larger vehicles like trucks and SUVs are cheaper to insure? Not necessarily. Bigger vehicles mean there is a larger potential to cause damage to other vehicles in the event of an accident, which inflates liability costs.
Price/status ï¿½ KBB.com states that the cost of a vehicle is the first and primary consideration for most insurance companies when setting the price of the policy. Insurersï¿½ rationale is typically that the more expensive the car, the more expensive it is to repair ï¿½ namely when it comes to replacing parts, especially on foreign luxury vehicles, or when an entire vehicle is ï¿½totaled.ï¿½
Engine size ï¿½ Speed comes back into play here, as the more horsepower a motor has, the more likely the car will be driven faster, leading to a higher risk of accidents. If motor size is not an important factor to you when choosing a vehicle, KBB.com recommends opting for a vehicle with less horsepower.
Likelihood of theft ï¿½ This factor is somewhat arbitrary, as there can be any number of reasons cars get stolen, from overall desirability to demand for rare parts or even demand for common parts. Unfortunately, itï¿½s those more desired vehicles that can carry with them higher insurance premiums.
The National Insurance Crime Bureauï¿½s (NICB) most recent Hot Wheels report chronicles the most stolen vehicles in the United States. Honda Accord and Honda Civic were the top two most frequently stolen, respectively, in 2014. The list was also inundated with sporty imports due to their high desirability and to the fact that many are convertibles, and soft tops are relatively simple to break into.
Age ï¿½ When it comes to used versus new in the fight for lower insurance premiums, you may be surprised that there is no clear-cut answer. Itï¿½s commonly believed that new vehicles will just cost more due to the fact that theyï¿½re new, but the advanced technological safety features and structure of new vehicles drive down those costs. Cars can now more easily avoid accidents before they occur and can also better protect their occupants if an accident does happen.
On the other hand, used vehicles arenï¿½t always cheaper, due to their likelihood of theft.
ï¿½Newer cars may be more desirable but are actually targeted for theft far less often, as they are often equipped with anti-theft devices and GPS tracking systems,ï¿½ auto information research site DMV.org discloses. ï¿½Also, car thieves tend to target older cars because they can easily disassemble them and sell their parts for profit.ï¿½
With so many varying factors affecting insurance rates, you are not likely to find one single vehicle with the lowest possible premiums. Instead, speak with your insurance provider for more information and guidance.