Do You Have An Insurance-Friendly Car?

With the ever increasing cost of owning a vehicle, weighing the cost of your auto insurance is an important part of the car-buying experience. Yet there are a number of myths associated with insurance rates and vehicles that most people have believed as truth for years. There are also some basic guidelines for keeping your insurance rates down.

First, you have to learn to separate the myth from reality. Many people still believe that the smaller, less expensive auto is always going to bring you a lower insurance rate - it doesn't. They also believe that all sports cars are at a higher insurance rate due to reckless driving - not so. Some sports cars are at a higher rate due to their high theft history. Some are not as expensive to insure than one may think, because they have lower accident statistics. For instance, in the Porsche 911 has a significantly smaller chance for injury claims than other automobiles. One more myth, that red cars end up in more accidents each year. They don't.

To understand why it costs less to insure one car over another, it is important to understand what goes into determining your insurance rate. You can purchase a car that is reported to have a low rate to insure, but if your driving history is sketchy, your rate can go up. Age and gender also play a significant role in determining rates. Yet, buying a better rated car can help decrease your rate, especially if you are a higher risk driver.

So what are some warning signs when you are looking for a car to insure? If the car has a lot of horsepower or is high performance, it will cost you more to insure. Luxury vehicles, technologically advanced vehicles, and large SUV's are also more costly. Plus, very small vehicles and vehicles with a higher theft history can also make your insurance rate soar higher.

However, station wagons and vans are usually less to insure. These cars are medium sized, so they don't usually do a lot of damage to the other car while its size minimizes the amount of damage to itself and those inside. Plus, the costs of repairing a station wagon or van is also less to repair.

It is also important to know other characteristics of your car that can have an effect on your rate. For instance, a 4-door car can help lower your rate. Why? Because a car with 4 doors is stolen less often than those with 2 doors. Know your car's safety rating. The safer the rating on your car, often it will be less expensive to insure due to it keeping the driver and passengers safer and less prone to serious injuries.

Safety and theft are two reasons why your car insurance premium could be higher, and why some small cars are not cheaper to insure. If you have a small car that is prone to theft or are more expensive to repair, then your rate will be higher. Plus, if it is a car that has had a higher rate of bodily injury claims filed, then your premiums will also be higher.

So, where can you find out more information on the theft rates, collision rates, and losses associated with the car you are interested in buying? Take a look at the Highway Loss Data Institute website, http://www.iihs.org/vehicle_ratings/ictl/ictl.htm. The HLDI analyzing the cost to insurance companies in relation to the numbers of thefts, collisions, and injury claims for automobiles.

The bottom line is that the higher the safety rating and the lower the theft rating, the less expensive your insurance will be. Talk to your broker prior to buying a car to see the difference in rates between the cars you are looking for. Knowing about how much your insurance will cost you can help you determine if that dream car is really within your budget.

Do You Have An Insurance-Friendly Car?

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