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How Insurance Rates are Affected by Car Model

2018 10 31 Blog Various Cars Parked In A Line In Parking Lot

By Madeline Klein on December 27, 2018 in Insurance Basics

For some people, the type of car they drive is everything. They have to have the newest model, or they can’t live without that new red truck they saw in their neighbor's driveway. If you’re one of those people, we get it. We like fun cars with all that new technology too.

However, for those of you who care more about how much you’re forking out each month on that car payment and insurance and less about the specific type of car, we’ve got some info just for you.

Reasons why the car model impacts your car insurance rate

You may already know that the type of car you have has an impact on your auto insurance rate. Many insurance companies check out a couple of things about your car. They look at your car’s make and model, and they also look into the cost of the vehicle when it’s brand new, aka the MSRP. In general, there are a few key reasons why your car make and model is taken into account when calculating insurance rates.

Repair Costs: Vehicle repairs make up a big portion of what providers pay out for a claim, so the cheaper a car is to repair, the cheaper it could be to insure. This also takes into consideration the cost of parts for a car. The more expensive the parts, the more expensive your rate could be with that car.

Performance: Some insurance companies look at the speed a car can reach when calculating insurance costs. For example, it’s more likely you’ll get a speeding ticket in a car that can go 0 to 60 in a blink of an eye. (PS: Speeding tickets can increase your insurance rate, so you’ll want to be careful of those!) Everyone knows super fast cars can be dangerous, and some insurance companies pay attention to the performance of your vehicle.

Anti-theft device: An anti-theft system provides a little extra peace of mind, and will deter thieves and keep your vehicle from getting stolen. Anti-theft devices built into a car will also have an impact on the rate because most insurance companies provide a discount (hint hint…we have an anti-theft discount!).

This info can be used differently by each provider, though, so there’s not really a hard-and-fast rule to figure out how a car could impact your rate.

The cheapest vehicles to insure

If you’re looking for a brand new ride, Nerdwallet pulled together the average insurance premiums for some top-rated car makes and models.

Keep in mind that these aren’t hard and fast numbers. Every insurance provider calculates things a little differently, and so much is dependent on the individual driver. Also, car make and model isn’t used to figure the cost of each type of coverage. Here at Say, the make and model is used in calculating rates for Collision and Comprehensive Coverage, but it isn’t a factor in Liability Coverage.

Overall though, these numbers can be used to get a general idea of how a car’s make and model can affect your insurance premium.

Average insurance rates by car model

As you’ve probably already read, there are a lot of other factors that affect your insurance rate. Things like your driving record, the people in your household, and your financial history impact your rate. But the more you know about your insurance rate, the more empowered you can be to make the best decisions for you and your family.

Madeline Klein is Say's Digital Content Producer. She graduated from the University of Missouri with a Bachelor of Journalism, emphasis in Strategic Communication. Her experience is in writing and digital media. Madeline loves using her creativity to write and design new and exciting pieces of work for Say!