Reader’s Question:

I was just thinking how does type or model of car affect car insurance? Are there cars that guarantee low cost car insurance? I have a hybrid coupe. Will its model and make affect my insurance?

Gordon

Gary, IN

Before you buy a car, you should consider its make and model because it will define the cost of your insurance policy in no time. Just by knowing the model and type of your car gives insurance company enough data to compute for your annual or monthly premiums. These car insurance companies back up their computations by statistics. According to the Highway Loss Data Institute, 4-door cars have 92% less chance of claims related to theft than 2-door cars whereas convertible cars have greater risk and chance of theft related claims than a coupe or sedan. Although luxury cars appear to be a more likely target for theft, statistically, you might be surprised that a Celica has higher probability of theft than that of a Camry.

Another considerable factor is safety. In this regard, price does not matter. It does not matter whether you have an expensive ride or a cheap ride as long as it can pass quality and safety checks, especially on track tests and crash tests. Although adding safety features such as airbags, and an anti-theft alarm system, anti-skid system, and an automated braking system will cost more, these will eventually increase your approval rate. The higher the approval rate as endorsed by the safety board, the higher your chance of getting discounts on your car insurance policy.

The next factor to consider is the model and make of your car as predetermined by cost. The more expensive your car, how hard it is to maintain, the rarity of replacement parts and availability of OEM parts has something to do with your car insurance premiums. If you maintain either a sports car, luxury car, an SUV, or simply a show/collectible car, then you might as well expect higher car insurance premiums. Not only are these vehicles hard to maintain, their value is beyond the common standard. The assumption would be they are costly to repair and maintain. Ultimately, the higher value of claims for these kinds of cars will result in higher rates.

Car insurance companies use these statistics to base their computations in setting car insurance policy rates. The higher the risk there is, in relation to the model and make of your car, the pricier it gets on your car insurance policy. There is no particular car that guarantees low cost car insurance, but it certainly helps to just buy a low profile car to save money on car insurance. Like your car for example, a hybrid car like yours could save you money by asking on discount for hybrids. Usually, car insurance companies, as mandated by some states, encourage and give incentives for green economic cars such as hybrids. You just have to make inquiries about this kind of discount from your car insurance carrier.