Four Ways the Car you Own Effects Your Insurance

21810631_mlIf you plan on going out and buying a car in the next few months, you may be interested to know what to look for in a car that will help you keep your insurance costs as low  as possible. Did you know that the type of car you drive plays a major role in the cost of your coverage? While this is not the only factor it does play quite a large part.

There are 4 basic factors that are used in rating insurance on different cars.  These include costs to repair the vehicle after an accident, the amount of damage the car can cause in the event of an accident, how safe the passengers are inside of the vehicle during an accident, and the possibility of theft or vandalism.  Looking at each of this separately will give you a better idea of why these items are important.

Cost of Repair

After an accident the insurance company may be liable to repair the damage to your car.  They are going to bee looking for a car that is made of quality parts.  Being able to secure replacement parts is also a concern.  They are going to charge more if they have to send over seas to get a fender as opposed to being able to get one nearby. This also comes into play with antique vehicles and specialty cars that the parts are harder to acquire.

Amount of Damage

If your vehicle does not have a good safety rating, or if it is able to cause a lot of damage to other vehicles or property it is going to cist you more.  Think big truck here.  If your car is larger, faster, heavier the opportunity to cause more damage is far greater than a smaller car some grandma would drive.  This is also a case of property damage, so if you take your vehicle rock climbing where you can cause damage to others, this is going to be a factor.

Passenger Injuries

Again the safety ratings on your car will matter.  The more protection and higher the safety rating the lower your insurance.  Remember they are taking a risk on you and your car, so they are going to be willing to charge less for less risk.

Likelihood of Theft or Vandalism

The more anti-theft and anti-vandalism features that your vehicles has the lower your costs will be.  The cost of some of these features may be worth it if it will lower your insurance rates.  Also, the area that you live and work in will play into this.  If it is known to be a crime ridden area the risk to the insurance company will be higher and your rates will reflect this.

So when you go looking for that new vehicle do more than just look at the color of the car and the amount it is going to cost.  Check a little deeper and see what the safety options are that come standard and what you might add on.  Make sure you see what they safety tests have shown about the safety in terms of to the car as well as the passengers. Find out where the car is manufactured and if parts are readily available and easily obtained.  This is the information that will really help when it comes to the cost of your insurance.

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