How Your Vehicle Can Affect Your Auto Insurance

Two sedans and an SUV on the showroom floor of an auto dealershipWe’ve all heard that auto insurance rates can fluctuate according to the type of car you drive. Oftentimes, our decision to purchase a vehicle is heavily influenced by the notion that it may increase our monthly payments. While most insurance companies have their own unique formula that determines how much a policyholder should pay, there are common vehicle features that customarily weigh into the cost of insurance. Let’s take a look at how your vehicle can affect your auto insurance and why.

How Luxurious Is Your Vehicle?

Many drivers are aware that the make and model of their vehicle can affect their auto insurance rates, but why is this the case? When you buy a foreign sports car, you’re going to be paying higher rates than your neighbors who drive four-door sedans. If your luxury car incurs damage, the repairs are costly, as the parts are not only higher in quality than your typical car, but they also need to be imported. To cover these costs, the insurance company charges you a higher rate.

How Old Is Your Vehicle?

Regardless of the age of your car, the cost of repairs is going to be expensive. However, replacing or repairing a newer vehicle will be significantly costlier than an older vehicle that has lost its value due to wear and tear. As a result, your collision coverage and your auto insurance premiums will be higher for a new car, as the carrier needs to account for the vehicle’s value.

How Safe Is Your Vehicle?

Your insurance carrier will also take your car’s safety rating into account when calculating your monthly rate. While most insurance providers only consider basic safety features – such as airbags and seatbelts – some carriers may factor in auto insurance discounts for additional safety features, including backup cameras, electronic stability control, hands-free calling, and collision warning systems. However, components that could potentially lead to unsafe driving – such as a turbocharged engine – can contribute to a higher insurance rate.

What Size Is Your Vehicle?

Regarding insurance rates, sometimes bigger is better. Larger vehicles are usually considered safer in the industry. A larger car with a good safety rating will lower your monthly payment more so than a smaller car with the same safety rating. Though, as previously mentioned, the size of your engine can impact your insurance rate for the worse.

How Many Doors Does Your Vehicle Have?

This might seem convoluted, but you may have to pay more for a two-door vehicle than a car with four doors. In general, two-door vehicles are deemed sports cars and may result in a higher insurance rate compared to your typical four-door family vehicle. However, this may vary from company to company. Some insurance carriers may have their own rating systems and vehicle classifications, allowing them to be more lenient in what they deem a sports car.

Understanding how your vehicle can affect your auto insurance can help you make informed car-buying decisions in the future. Though, with each insurance carrier having its own classifications and formulas, calculating the price of your auto insurance can be complicated, which is why it’s wise to consult with an independent insurance agent. At TJ Woods Insurance, we can find you the auto insurance that results in the most protection for your needs. To discover how we can pair you with the right insurance and how your vehicle will affect the cost, contact us today.