How Does the Type of Vehicle Affect Auto Insurance Rates?

When shopping for a new car, most people consider factors such as price, fuel efficiency and style. However, one critical aspect often overlooked is how the type of vehicle being purchased can impact auto insurance rates. Insurance companies consider various elements when determining premiums, and the specific vehicle you drive plays a pivotal role.

Why Vehicle Type Matters

The type of vehicle you own can mean higher or lower insurance premiums based on several factors. For example, luxury vehicles tend to have higher insurance rates due to more expensive repair costs and attractiveness to thieves. On the other hand, more affordable cars with high safety ratings may qualify for lower premiums because they are usually less costly to repair and replace. 

Insurance companies also look at the vehicle’s performance. Sports cars, which are built for speed, often have higher premiums due to the increased likelihood of accidents and the higher costs associated with repairs. Meanwhile, family sedans and minivans, known for their safety and practicality, may have lower insurance rates.

Key Factors Insurers Consider

When determining auto insurance rates, insurers may consider the following factors directly influenced by your vehicle type:

• Repair costs—Vehicles with expensive or rare parts cost more to repair, leading to potentially higher insurance rates.

• Safety features—Cars with advanced features like automatic braking, lane departure warnings and airbags may qualify for discounts.

• Theft rates—Vehicles frequently targeted by thieves may have higher premiums.

• Performance capabilities—Insurers may view high-performance vehicles like sports cars as riskier to insure, resulting in higher premiums.

Auto Insurance Rates in Sherman, TX

The type of vehicle you choose directly impacts your auto insurance rates, so you may want to speak to an agent before making your purchase. Contact the experts at AeroMex Insurance for a free quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.