Friday, May 25, 2012

About car types and auto insurance rates


Many drivers usually get surprised when they learn about different insurance rates for different car types. They think that it doesn't matter whether it's a small car or a hot rod as long as they have a good driving record and don't get in trouble in traffic. With all this, for auto insurance providers it's a whole other perspective and they will charge you with different premiums according the type of car you're trying to insure. Thus, it's important to understand the following characteristics of each car type and make your decisions correctly if you want your auto insurance budget to be limited:
Small cars. Smaller vehicles are typically cheap and quite comfortable in conditions of heavy traffic. They usually have low engine volumes, top speed, get stolen quite rarely and are inexpensive to handle at repair. However, auto insurance can sometimes be a bit costly for small cars because they tend to get damaged very bad during accidents. It's all about the physics, which states that the smaller object tends to get the most damage regardless of the safety features the manufacturer has included. Because of this, costly claims tend to arise more often with such vehicles, and the insurers respond with respective pricing.
Medium sized cars and family vehicles. This car type is typically regarded as the safest and the cheapest to insure. Sure, there are different makes and models, but the general rule is that these cars are quite safe, have low repair costs and theft rates, and tend to get damaged much less than smaller vehicles during an accident. So you will usually get the best auto insurance rates for this type of vehicles.
SUVs. SUVs like trucks and minivans are very comfortable and give you a whole different perspective in traffic. However, the size can turn into a problem with these vehicles. Due to their size and increased mass as compared to other vehicle types SUVs tend to produce more damage during accidents, especially involving other cars. The claims arising with an SUV are likely to be higher because the other car tends to get damaged quite bad and there are likely to be injuries as well. Coupled with higher repair costs for such vehicles, SUVs are usually more expensive to insure.
Sports vehicles. Being both cool and relatively cheap, sports cars often seem as an advantageous option for car buyers. Nevertheless, when insuring a typical sports car, you will actually have a hard time finding cheap auto insurance because insurers tend to classify such cars as high risk. Increased top speed, engine volume, elevated theft and accident rates as well as the likelihood to produce a very serious car crash all lead to higher auto insurance rates for sports vehicles.
Luxury vehicles. It may seem natural that expensive luxury cars will cost more to insure than other car types. However, it's not because they are expensive to buy - insurers have other reasons to charge higher rates for such vehicles. First of all, these cars are usually very costly to repair, often requiring exclusive and overpriced repair parts that are hard to find in an ordinary repair shop. Besides, such vehicles are often targeted by car thieves and burglars due to their value and scarcity. So don't expect to get cheap auto insurance for any luxury car.

1 comment:

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