Your Car Insurance Premium are Affected by the Car You Drive
Did you know the type of vehicle you drive actually affects your insurance rate? I mean it’s not explicit but it does, I will explain how this is.
So you probably purchase a new car and you’ve noticed that your insurance premiums actually increased as opposed to what it was before. It goes without saying that the type of vehicle you drive is heavily analyzed by insurance companies when they’re giving out their insurance premiums. It makes you wonder what is really behind your insurance premium? Doesn’t it?
Just before you take the leap and purchase a new car, here are a few tips and tricks you should know to save yourself some heavy cash.
- New car models are expensive. Newer car models out there on the market are a lot more expensive to insure than older ones, the reason why this is is simply based on the price of a new car. Put it in perspective a 2010 BMW 3 Series what cost less to insure than a 2019 BMW 3 Series, the newer model has newer features that is a lot more expensive. So putting two and two together actually make sense, granted it’s not just limited to BMW’s it happens to all car models out there.
- Valuable vehicles are much more expensive to insure. I mean this is a given, think about this you just bought your first supercar the 2020 McLaren 600lt, I’m sure you aren’t surprised set the price to ensure your Supercar is far less to insure your Toyota. Do you follow me on this? The concept here is a valuable vehicle such as a Supercar, limousine, or a vintage sports car can be far more pricey to insure than a locally-produced vehicle.
- Stolen. There are some vehicles out there that can be locally produced but actually have a high rate of being stolen. Cars like the Honda Civic and the Toyota Camry our cars are often stolen.
- Safety. One thing that comes into play to the insurance company whether generating your insurance premium is how safe the vehicle is. So if you have a vehicle that is much safer than another vehicle it only makes sense to have a lower insurance premium.
- Accidents. One thing that’s factored in are the number of accidents statistically a vehicle get into. So vehicles that are luxury such as a BMW M4, Land Rovers, Audi’s, Mercedes you name it anything of the luxury segment has a higher chance of getting into an accident statistically.
- Bigger vehicles. So if you’re the one who likes the big trucks and large SUVs driving around don’t be afraid to tackle on the hefty insurance Premier that comes with it. The reason for this is because larger Vehicles tend to do more damage to other people’s property. Think about the saying that says the bigger they are the harder they fall, well it’s the bigger they are the harder they hit.
These are just a few tips and tricks you should know when you’re purchasing your vehicle. Definitely, have this is a mental note so when you’re looking around you can mentally check off these boxes to make sure that you find a vehicle that’s right for you. You should also talk to your insurance company about their deals and discounts using your declaration page that comes with your insurance policy.