Are you in the market for a new car? You may be considering factors, such as the style, size and cost of the vehicle. You may also be considering long-term costs associated with maintenance of the vehicle as well as its fuel economy. But there’s one more item you need to consider in your list: the cost of insuring the car you choose.
There are various factors that car insurance companies consider to determine how much you pay for your premium. These include marital status, age, driving history, credit history as well as geographical location. However, according to a recent study by WalletHub, the type of car you’re driving also plays an important role in determining the cost of your car insurance.
What Influences Insurers
When it comes to types of cars, there are several factors that go into determining how much premium will be charged.
The following are some points to consider when choosing a car:
The Size of the Car
The size of the vehicle influences the cost of insurance. Smaller cars are considered higher risk to insure since they are more likely to be in an accident. This is because younger people prefer smaller cars and are riskier drivers. Accidents involving smaller cars are also more likely to result in fatalities. This makes small fast cars more expensive to insure.
On the other hand, large cars such as SUVs aren’t cheap to insure either. This is because they are likely to cause more damage to property and other cars when involved in an accident, not to mention they’re costlier to repair themselves. If you want cheap car insurance, you’d be safer sticking to the mid-sized cars.
Value of the Vehicle
High-end cars cost a lot more to replace or repair in case of an accident. It therefore makes sense that high-end cars attract higher premiums. High-end cars produced by foreign companies are especially costly to insure. This is because parts are not readily available locally. It can also be difficult replacing the vehicle in case it is written off.
If you’re looking for cheaper insurance premiums, avoid an expensive sticker price. You’ll also cut back on the cost of your maintenance.
Chances of the Car Being Stolen
When your car is stolen, your insurance will cater (if you have comprehensive coverage) the cost of replacing it. Insurance companies are therefore cautious about covering cars that are common targets amongst thieves. Aside from cars that are easy to break into (e.g. Honda Accord) thieves target cars that they can get rid of quickly. They also target cars whose parts are in high demand.
The Size of the Motor
How powerful is your car? Many people who invest in cars with powerful motors like to drive fast. The higher the horsepower on your vehicle the more likely it is to be involved in an accident. Cars with more powerful motors therefore attract higher insurance premiums.
So, Convertible, Hatchback or Minivan?
To start, you’ll want to take your time researching car insurance comparison sites to see what each vehicle type is fetching premium wise.
Minivans are among the cheapest cars to insure. These cars are commonly purchased by families because of their seating capacity and safety features. Married people with children are also thought to be safer drivers.
Hatchbacks attract relatively low insurance rates. Although they are smaller vehicles, they are affordable and often feature mid-sized motors.
Convertibles are considered high-end vehicles. They are often small and fast vehicles. While not heavily targeted for thefts, the horsepower, vehicle value, and size alone easily give convertibles the highest insurance rate out of these three types of vehicles.
What type of vehicle would you choose? Have you found other factors to influence the cost of insurance?
Photo courtesy of: BKD