How Does The Car You Drive Affect Your Car Insurance Rates?

When you buy insurance, your driving record and personal history are a big part of your rate. The kind of car you drive also matters. Here's what insurance companies look at.

The Age of Your Car

The age of your car directly impacts what the insurance company has to pay for a claim. A new car is worth more than an old car, so they'll have to pay you more if you just bought a brand-new car. If you drive an old beater, you'll pay less because the insurance company will have to pay less.

Keep in mind that this could vary based on other factors. Cars change over time, so this rule only holds fully true as long as the cars are truly identical.

Your Car's Safety Features

Insurance companies also price policies based on safety features because increased safety reduces what they might have to pay out in medical bills. If your car has advanced safety features, you'll likely receive a discount. If you have an older car that's lacking features that are considered standard today, you might have to pay more.

Exactly what features count and how they affect your premium changes over time. For example, airbags used to give a big discount, but now they're so standard that insurance companies assume that every car should have them.

How Much Thieves Like Your Car

Another thing that insurance companies have to look at is the risk that your car will be stolen. Part of this is how much your car is worth, since the insurance company will need to pay to replace it. Another factor is how likely thieves are to want to take it.

Thieves don't always go for the most expensive cars. Some are simply more desirable to thieves or on the black market. Some have more valuable parts if the thief plans to chop the car up. Other cars are simply easier or harder to steal.

Your Car's Horsepower

Your car's power and other driving features also play a role in your insurance rates. It's much harder to drive recklessly in a minivan than a sportscar. The temptation to drive dangerously is much lower when your car isn't fun to drive.

Different types of cars also attract different types of drivers. People with a need for speed usually buy similar cars, so those cars have a higher rate of accidents and see higher insurance rates.

To get a quote on car insurance, contact a local car insurance company today.

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