Many factors can influence your insurance policy’s rates and coverage. Many of these factors are general in nature, but there are many that address specific situations. Insurance companies can use your gender, age and marital status to determine your price. Surprisingly, the car you drive is often a factor in determining your cost.
It is not surprising that your car is part of the insurance rate you pay. Cars are a reflection of our lifestyles. Different cars may have different needs when it comes to repairs. We won’t be discussing the specific models of cars that may have higher or lower insurance estimates, but here are some general characteristics about automobiles that could impact the insurance bill you will have to pay.
Repair History
Many automobiles have a long life expectancy due to the regular maintenance they receive. Routine maintenance can help prevent major defects in your automobile. This will not only save you money on repairs, but also allows you to sell your car later and receive more money due to the condition of the car.
Auto insurance is no different. A higher rate of insurance might be possible if your car has been in good condition and there have not been any accidents. If your car has suffered serious damage and isn’t in its best condition, the insurance company will likely reflect that fact in your rate. Lemons are cars that have suffered multiple damages. There are laws to protect those who accidentally buy them. However, none of these laws will protect you from the higher interest rates they attract.
Type
Although type is subjective, it refers to the vehicle’s size, weight, and general use according to the manufacturer. If you buy a small car and plan to only drive it within the city, the chances are that your insurance rates will be lower. This is because the company doesn’t consider you a high-risk customer who could ever have to pay for an insurance policy.
However, if you buy a large vehicle like an SUV and drive it off-road a lot, your insurance rates might rise because the company considers you a higher risk. Keep in mind that insurance companies view risk as a major part of the equation. If you want to obtain insurance rates, you will need to minimize it. When they look at your account, companies tend to see a lower level of risk if you have smaller cars or a safer lifestyle.
