When choosing car insurance, you would naturally want to optimize your options; that is, maximum coverage for the least amount. Although you may be conscious of the fact that your driving record has a bearing on how much your insurance premium will be, you may not know that it is likewise affected by other factors that are directly related to your car, such as:
Theft Risk. Insurance companies keep vigilant watch of statistics about cars, specifically those on car theft. This will help them establish whether or not your car is likely to be stolen. Cars that have the distinction of being victimized more frequently by car thieves would obviously cost more to insure. This is because a pay-out is more likely for a car that has a high theft probability. Hence, prior to purchasing your car of choice, make sure that it does not have a high theft risk. If it is, be prepared to pay more for your insurance premium.
Safety Rating. All car brands out in the market undergo tests for compliance to safety standards and given safety ratings based on the results. Features that can influence car safety include emergency brakes, traction and electronic stability controls, seat belts and airbags. The higher the safety rating of your car, the lesser your insurance rate will be, since safer cars are more capable of protecting the passengers from injury in case of accidents.
It is interesting to note that among the large and midsize luxury cars and SUV’s, Acura cars were deemed the safest by the Insurance Institute of Highway Safety or IIHS. For the more compact types, those manufactured by Chevrolet and Dodge were the top picks. To know more about the safety features of these vehicles, you can check out this site for Dodge Canada.
Vehicle size. Size does matter when it comes to calculating insurance premiums. Larger cars are usually deemed safer when compared to smaller cars. Thus, they usually have lower rates. However, this does not apply to engine size, since cars that have more powerful engines are likely to be driven faster and, thus, more prone to accidents. This is why insurance premium for a sports car with an eight-cylinder engine will be more expensive than that of a four-cylinder sedan.
Vehicle age and model. Cars depreciate; the older it gets, the less its value becomes. Older cars that are involved in accidents are more likely to be replaced by their owners rather than repaired. This is the reason why older cars are charged with lower premiums, since there is less probability for insurance companies to pay for expensive repair jobs. Conversely, newer cars can better withstand accidents and have more chances of being repaired. Thus, more recent car models are assessed for higher collision coverage rates, which translate to more expensive premiums.
Every insurance company has its own formula for calculating insurance rates, which takes into account various factors, including those which are car-related. Hence, in order to save money on insurance costs, make an effort to get quotes for different car brands and models. This way, you will be a more informed buyer in your next car purchase.