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Does the Car You Drive Affect Your Insurance Rate?

Categories: Automobile

Does the car you drive affect your insurance rates? While the simple answer to this question is “yes”, there are a variety of different factors about your car that will be taken into account by an insurance professional, such as the ones at Mountainview Insurance, when they are calculating your insurance rate. These factors include but are not limited to:

1. How Expensive the Car is

Since insurance premium rates are based on how much it would cost to repair or replace a vehicle after an accident, it should not be surprising to learn that expensive cars tend to have higher premium rates than cheaper cars do. Certain higher-end cars are also more susceptible to theft, which can also result in higher coverage rates.

2. The Vehicle’s Age

The overall age of a vehicle may or may not affect your insurance rate. Since insurance companies calculate premium rates based on how much it would cost to repair or replace a car, newer cars may be cheaper to insure if they have high-end safety features, such as emergency braking and lane-departure warnings; however, some older cars may be cheaper to insure than newer cars that do not have high-end safety features because newer cars will have more expensive parts.

3. The Type of Fuel it Uses

As more and more people move toward buying electric cars, it is important to keep in mind that electric cars may be more costly to repair after an accident when compared to repairing a gasoline powered car. This means that electric vehicles may also be more expensive to insure than gas or diesel-powered vehicles.

4. The Car’s Make and Model

One of the factors that an insurance company will take into account when calculating insurance rates is their experience with certain makes and models of vehicles. Makes and models that have a notable negative pattern associated with them will most likely cost more money to insure.

5. The Car’s Size

The size of the vehicle can impact your insurance rate because larger vehicles can cause more damage in an accident compared to smaller vehicles; however, some larger vehicles like mini vans tend to have lower insurance rates based on their overall safety ratings and the fact that mini vans are typically driven by parents who will be more cautious on the road.

If you would like to learn more about how the car you drive affects your insurance rate, or if you are interested in one of our car insurance policies, please contact Mountainview Insurance at 604-557-0255 or by filling out a contact form on our website.

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