There are a lot of factors that go into determining your insurance premium, including the vehicle you drive. Here we’ll take a look at how different vehicle types can impact your rate when you get insurance for your car.
Certain vehicle types are considered riskier to insure than others. For example, sports cars tend to be more expensive to insure because they are more likely to be involved in an accident. On the other hand, SUVs are often less expensive to insure because they are considered safer.
Vehicle Make
Luxury carmakers come with a hefty price tag, and that doesn’t just apply to the vehicles themselves. The cost of insurance for a vehicle from a luxury brand is often significantly more than for a vehicle from a mainstream brand.
Some luxury vehicle makes include:
- Rolls-Royce
- Bentley
- Ferrari
- Lamborghini
- Porsche
- McLaren
- Jaguar
- BMW
This is likely to be a list that many of us are familiar with but there are many other luxury brands and they will often have particular models that carry higher price tags, whereas they will have others more standard.
The expensive models can be about the luxury of the interiors and special features or more about engine size and performance. Either way, this means extra cost to insurers if there is an accident.
There are a few reasons for this. First of all, luxury cars tend to be more expensive to repair or replace than mainstream cars. This is because they often use more expensive materials and have more complex construction. Secondly, luxury cars are more likely to be stolen than mainstream cars. This is partly due to their high resale value, but also because thieves know that the owners of luxury cars are more likely to have comprehensive insurance coverage.
So, if you’re driving a luxury vehicle, be prepared to pay more for your insurance. It’s just one of the many costs of owning a high-end car.
Vehicle Engine Size
Vehicle engine size is one of the many factors that insurance companies consider when calculating premiums. The bigger the engine, the more horsepower it has, and the more expensive it is to insure. That’s because a bigger engine means a vehicle is more likely to cause damage in an accident. So, if you’re looking to save money on your car insurance, it’s best to choose a vehicle with a smaller engine.
Insurers worry about higher engine capacities because more claims take place within this category of vehicle, and when they do, will likely result in a bigger financial hit for them. Speed is a factor in accidents and many will be of this view not just because it seems obvious but because the evidence exists to back it up.
Age of the Vehicle
The age of a vehicle is another factor that can impact your insurance premium. Newer vehicles are generally more expensive to insure than older ones because they are worth more and are more likely to be involved in a theft. So, if you’re looking for a cheaper insurance premium, it’s best to choose an older vehicle.
As you can see, when it comes to car insurance, the vehicle you drive is a big factor in your premium. Some vehicle types are considered riskier and so are more expensive to insure than others, and luxury cars tend to be even more expensive. The age of your vehicle can also impact your premium, with newer vehicles costing more to insure than older ones.
If you’re looking for a cheaper insurance premium, it’s best to choose a vehicle with a smaller engine and an older model. This is the ideal combination if you are on a budget. Either way, insurers will allow for the losses they might incur through accidents by setting premiums as per known insurance groups.