What Car Has The Best Insurance Rate?

By Mike Anderson Posted in Car Insurance News



How Make And Model Of Cars Determine Rates

One of the major factors that determine your car insurance rate is the make and model of the car you drive. Differences among automobile makes and models can translate into hundreds of dollars every year.

One rule of thumb in determining what car has the best insurance rate is if your car was inexpensive to purchase in the first place, it should be inexpensive to insure. But, remember, the purchase price of your car is not the only determining factor insurers resolve on how to set insurance premiums for your car.

Most insurance companies are interested in how much your car will cost for repairs in the event an owner makes a claim.  According to statistics, virtually three-quarters of money insurers pay out to policyholders goes toward repairs of the vehicle. Therefore, the cheaper and easier your automobile is to repair, the most likely it is that your insurance premium will be low.

Insurance companies are also interested in how is the auto secure, in that, if the car is protected by an alarm system and/or a tracking system, the insured will probably find lower premiums. Even if the automobile is not of high value it would be beneficial to consider these types of security measures.

Knowing What Determines Your Car’s Insurance Rate

One further point to consider is that if you have a “sports” car, you may look terrific behind the wheel but you will have to prepare yourself for higher insurance premium costs. Insurers are most likely to penalize those vehicles with greater acceleration potential and top speed vehicles because they are statistically more likely to be involved in a higher number of accidents.

When an insurer decides on how much a certain vehicle should cost to be insured, it’s no guessing game for them. To determine the costs of premiums, all autos are categorized numbered 1-50. The cheaper your vehicle is to insure, the lower the number of category. 

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