The Effects A Car's Make And Model Have On Your Auto Insurance Rates
Do you know what factors affect your auto insurance rates? Many people understand some of the factors that affect their rates, but some do not understand the effects a car's make and model have on their premiums. Your vehicle's make and model will affect the price you pay for your insurance coverage, and here are several things to know about these effects.
A Car's Age Affects Its Value
One of the questions your insurance agent will ask is the age of the vehicle. Agents need to know the age of a car because the age affects the value. A brand-new vehicle is always worth more than a car that is five or ten years old. A car that is even older than this might be worth a lot less than a new car. The age of a car matters to agents because they want to know the car's value when they provide an insurance quote.
The Make and Model Affect the Safety of the Car
The second thing the agent will need to know is the make and model of the car. The reason that agents need to know this is for the effects that the make and model have on a vehicle's safety. You can buy very safe vehicles. These cars have excellent safety ratings, and the ratings tell the agents a lot about the probability of the car getting in an accident. Safety ratings play a significant role in your rates. If you want to save money, buy a car with high safety ratings.
The Likelihood of Theft Matters
The make and model of a car also matter to agents because of the likelihood of theft. Some cars have a higher chance of getting stolen, while other cars have low rates of theft. You will pay more to insure a car that has a high chance of getting stolen.
The Types of Coverages Also Play a Role in Your Rates
The last thing to know is that your rates will vary based on the types of coverages you choose for the vehicle. For lower rates, you may need to stick with a liability-only policy instead of a full-coverage plan.
If you understand these things when you go car shopping, you might be able to choose a vehicle that will cost less to insure. If you have questions about rates and insurance options, contact a local auto insurance agent today.