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Vehicle Types and How They Impact Your Insurance |
If you are contemplating the purchase of a new or used car, truck, or
SUV, it is very important to consider how your new vehicle may impact
your auto insurance premiums. Many car buyers report facing a secondary sense of “sticker shock” when they realize how much their insurance costs can skyrocket after purchasing a new or pre-owned vehicle. Don’t get caught off guard -- research your purchase before you invest in a new car!
Insurance companies use research and statistics to evaluate how much one should pay to insure a specific make and model of vehicle. Some of the biggest factors in assessing the risk a company takes on when offering insurance to a car owner is the usual costs to repair the insured car or truck, the safety features on the vehicle, and the possibility of theft. Those statistics are used to come up with a cost of insurance.
Of course, we cannot post a comprehensive lists of all makes, models, and years of vehicles to tell you exactly what your insurance costs will be,. All companies use their own rating systems, so costs may vary a bit. What we can give you some basic information on car and truck styles and how they may impact your insurance costs.
Many people keep classic cars as a hobby, and they can be excellent to insure. Because classic cars are typically driven for short distances and at cautious speeds, insurance companies sometimes specialize in and even favor these vehicles. They will, however, limit the number of miles the car can be driven each term and rates may also fluctuate based on how the car is stored.
Unlike classic cars, sports cars and high performance vehicles designed to drive at high speeds are the most costly to insure. They indicate to insurance companies that you are a risky driver who doesn’t obey local speed laws, and they are also riskier as far as theft and damages are concerned.
Minivans and four door cars designed for family use are much preferred by insurance companies, equating in lower rates for their drivers. Not only as they viewed as cars that are driven carefully by stable and responsible motorists, but they are also unattractive to thieves and sturdy in the event of a collision.
Although Sport Utility Vehicles or SUVs are very popular among today’s drivers, they are not favored by insurance companies. While SUVs are very common and therefore relatively easy to repair, they also cause extensive damage to other vehicles in a collision. Because your liability insurance is used to compensate other motorists for damage you inflict to their cars, trucks, and other property, liability rates will go up if you purchase an SUV.
Pick up trucks are also subject to higher insurance costs for the same reason. Several makes and models are among the most expensive vehicles to insure, and that’s why we advise against purchasing a pick up truck unless you have a professional or hobby need to own one for towing or hauling.
When it comes to manufacturing countries, Japanese, European, and domestic vehicles all compare differently. However, European and Japanese cars often equate to higher repair costs since the technicians who work on those vehicles are in high demand and use specialized tools. Buying American can save you big money on your car insurance!
Overall, the best advice we can give is to get some automobile insurance quotes prior to purchasing a new vehicle. Only then can you really see whether or not the vehicle will be affordable to insure and maintain! |
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