How Types of Vehicles Change Insurance Rates

The specifications, price and type of the vehicle insured are some of the most influential factors in calculating premiums. It is on the same level as driving history, claim records, credit score and home address. That is why it is important to look at its insurance rating when you are choosing a new ride to buy. It is too late after purchasing and you discover that your new auto isn’t popular with the carriers.

Car and Driver Type

This may not be a big problem if you are an experienced driver. You may end up paying $100 more for a higher risk vehicle and it may not deter you from going for one. It really is a serious problem when you are choosing an automobile for a teenager who is already considered to be one of the highest risks in the industry due to lack of experience and all the statistical evidence going against them.

If you want to have a cheap to insure car for a teenager there are a few points to consider. The most influential one is the size of the engine and how fast it can go. You want to stay with the models that aren’t bigger than 1.0-litre engine size. The slower they are the better when it comes to premium costs. Furthermore, you should look for pretty common and reasonably priced models.

The more complicated and exotic brands can push up the premium for a young or novice driver pretty fast. If the automobile insurance quotes come really high, the next option is to buy a cheap vehicle and insure it for liabilities only for a couple of years. Once the young person gains enough experience you can upgrade to a better model.

Old or New Automobile

Very rarely people decide on buying second hand or direct from factory auto based on insurance. It is more to do with your means and preferences. Some people would never buy a new automobile out of principle because they can get a one-year-old one for half the price. And some will always purchase it if the plastic covers are still on.

Probably the best option is a second hand vehicle which is not more than 2 – 3 years old. That way, its market value will be lower, which makes the insurance cheaper. Also, you could still get discounts for the latest safety and security features. Again, if you want liability only you really shouldn’t invest a lot of money on it since it wouldn’t be insured under minimum coverage.

Shopping for Alternative Quotes

Whatever your choice and preferences, you should definitely shop around for the best car insurance quotes when you change your vehicle. This is the time you will see the most price changes. This would be more visible if the switch was dramatic like from a sports car to a minivan for obvious reasons.

Some companies love a minivan because it says mum, dad, kids and family. They all translate to responsible and careful driving to school, supermarket and other leisure activities. What an automobile represents is an important point to understand to appreciate who the carriers think.

On the other hand, a sports car says a single, carefree person, who could take risks without hesitation. Some companies really don’t like them and charge more for what they represent and what they are. Essentially, they can shoot up to amazing speeds in seconds. They ask questions like who would need and buy them and start loading their premiums. So, don’t just call your current provider, give the details and pay whatever the premium difference. Shop around for a bit to see how the prices change with your new ride. 

Author: Brandon Park