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.