Menu

Hello Insurance. Goodbye Risk.


About Me

Hello Insurance. Goodbye Risk.

When it comes down to it, all insurance really serves a single purpose. It reduces your risk. Perhaps you cannot afford to risk having to pay $100,000 if someone is badly injured on your property. You'd buy homeowners insurance to protect you from that risk. Maybe you don't want to have to shell out $20,000 for a new car if someone drives into the side of yours in a parking lot. You'd buy comprehensive car insurance to cover that risk. More insurance equals less risk. But how much risk do you need to protect against, and how much insurance is enough? Only you can answer that question, and you should have a better idea of your answer after reading the articles on this website.

Categories

Latest Posts

The Essential Benefits of Home Insurance
2 October 2024

Home insurance is more than just a safety net; it

Understanding Wholesale Business Insurance: A Guide
13 June 2024

In the dynamic world of wholesale trade, businesse

Adding a Teenage Driver to Your Auto Insurance Policy: What You Need to Know
18 March 2024

Adding a teenage driver to your auto insurance pol

Helping Your Teen Find the Right Car Insurance Policy
8 January 2024

Obtaining car insurance can be an intimidating end

How to Choose the Best Homeowners Insurance Policy for Your Home
21 November 2023

Purchasing a homeowners' insurance policy can be a

Why Does Auto Insurance Cost More For Some Vehicles?

Many people do not realize it, but auto insurance can be more expensive for certain vehicles. There are many reasons for this, including a vehicle's safety features, the quality of the vehicle, as well as the potential repair costs in the event of an accident. Keep reading to learn why auto insurance is more expensive for some types of cars than others.

Value

A vehicle's price tag is one of the main factors that will play a role in auto insurance premiums. If your vehicle gets stolen or totaled, your insurance company is going to have to pay you the value of the vehicle. Because of this, the more that the vehicle is worth, the higher the risk that the insurance agency is taking with the policy that it provides you. As the vehicle ages, the value of the vehicle and the premium that you pay each month will decrease.

Safety

While it is true that it will cost more to insure vehicles that cost more to purchase, you should not allow this to keep you from purchasing a new or later model vehicle. The safety rating of the vehicle will play a role in the monthly premium, and some of the new options tend to consist of technological advancements that will improve that rating and reduce the overall risk of personal injuries. For example, automatic emergency braking, lane departure warning systems, and electronic stability control are not features that can be found in older model vehicles, though each of them can contribute to lower automobile insurance rates.

Repair Costs

Luxury model vehicles tend to be more expensive due to the fact that their parts are manufactured from high-quality materials. Enhanced steel, thicker plastics, additional chrome, and high-grade leather upholstery are all costlier to repair. In addition, four-wheel-drive automobiles are some of the most expensive vehicles to insure simply due to the fact that their drivetrains are so complex. It does not take much damage to a four-wheel drive for a significant amount of money to have to be paid for repairs, and because of this, insurance agencies face increased risk.

The aforementioned are just a few of the reasons why some of the vehicles available on the market are more expensive to insure than some of the others. If you would like to learn more about what factors play a role in how much your car insurance premiums will be, contact your insurance agent today.