Car Insurance Articles

What Drives Up the Cost of Car Insurance?

2009-06-29

Today, the first step to getting car insurance for most people is getting a car insurance quote online, as many web sites are willing to offer you free comparable quotes. But to understand the differences between quotes, you need to understand what drives car insurance prices up. Much of the time, the answer to this question is your car itself.

Many people shop for car insurance before they actually buy, and it's a good thing they do. Certain cars cost much more than others to insure, and after determining the cost of the insurance, many choose a different vehicle that costs less to insure. Car models have different insurance rates based on a variety of factors. If you're buying an expensive, new model hot off the assembly line, you probably won't be able to find a cheap insurance quote. In their first year, car insurance prices are based on the amount of the sale price. So when you're looking for a car insurance quote by vehicle, you should know that the most expensive, new vehicles generally cost more to insure than the less expensive, new vehicles.

When car insurance companies insure vehicles, they look at the kind of drivers they attract. And if car insurance companies think that that the model car you drive or are thinking about driving attracts fast drivers, you're likely to get a higher quote. For instance, sports cars are the most expensive type of cars to insure for just this reason. But ultimately, the price of car insurance is determined by how many accidents are reported for that model.

Of course, how often a car is stolen also plays an important role in insurance costs. If you're looking to buy a Cadillac or other high-profile and often-stolen vehicle, then you're going to pay more in insurance costs. Cars that are less expensive, safe, and less likely to be stolen top the list for the cheapest cars to insure.

So, if you're looking for a cheap car insurance quote, remember to take the vehicle type into consideration. When you're thinking about buying a new car, it's smart to search for a car insurance quote by vehicle in order to determine if you can pay for the cost of the insurance, as well as the other costs associated with buying a new car. Also, it's important to remember that if you are financing a car, you're probably going to be required by your loan company to have a significant amount of insurance on that vehicle. Of course, your driving history, age, and location also impact your insurance rate, so you might be able to get away with paying a lower rate if you’re a safe driver in a safe location.