As you probably know, there are a number of factors influencing your auto insurance. Each insurance company uses a unique formula to determine how much exactly you should pay. Some of the factors, like credit rating and driving record, are quite personal. Others are more general – age, gender, occupation and place of residency. Overall, all factors being equal, the make and model of the vehicle you drive may rise or lower your insurance premiums.
At first glance, its quite logical to expect that big, fast and expensive cars would cost more to insurance. More horse power often translate in higher premiums as far as auto insurance goes. But does that automatically mean that all small cars are cheaper to insure? No, not always.
Sometimes smaller and less powerful cars are far more expensive to insure than big SUVs. “How is this possible” you may ask. The reason behind this has to do more with the actual drivers of a particular model, not the vehicle itself.
If you look around, you will quite probably notice that drivers can be categorised by the cars they drive. Its more likely to see a “soccer mom” in a SUV and a young inexperienced driver in a small car. In the eyes of insurers, the later falls into the “high risk driver” category.
It becomes apparent that technical parameters aside, the “accident history” of a particular vehicle plays a vital role. You may be a great driver with a clean record, but if you choose to drive a car, which is generally driven by “high risk drivers”, you will probably end up paying more than you have to.
Needless to say, safety features and anti theft devices are taken into consideration too. That is probably another reason why SUVs, which drivers are more safety concious, are cheaper to insure compared to some smaller vehicles.
Next time, before buying a car, ask yourself “Who are the typical drivers of this make and model” and you may just be able to avoid paying more than you have to for your auto insurance.