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Learning About Car Insurance

Hello, my name is Cliff Bolton. Welcome to my site about vehicle insurance. I wanted to learn all I could about insurance before I started driving to go into the decision-making process with ease. Once I started exploring the insurance industry, however, I could not stop reading. I learned all I needed to know to obtain car insurance and much, much more. I created this site to share this knowledge with my readers. I hope to help others tackle this important decision without worry. Please feel free to drop by daily to learn new information about this important topic. Thank you for visiting my site.

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Learning About Car Insurance

How Your Vehicle Type Affects Your Auto Insurance Rates

by June Peterson

One of the biggest factors affecting your car insurance rates is the type of vehicle you own. Insurance companies use research and algorithms to determine your auto insurance rates. If your vehicle tends to have higher risks and costs, then you will pay more for your insurance.

Though it may seem obvious some cars would obviously have higher insurance, it's not always the case. Some of the models with higher insurance costs may surprise you. Here are some of the typical ways your car type and model affects your auto insurance rates.

Overall Purchase Price

The more expensive the car, the more it costs to insure. The same goes for cars with expensive features that are costly to replace. You could have an inexpensive car, but have several expensive parts that are likely to be damaged in an accident.

Safety Tests/History

Models with poor safety history or that are more likely to be totaled in an accident are more costly to insure. People with smaller cars may pay a higher premium because of this reason. Having extra safety features make your car safer. However, they are more costly for your insurance company if you are in an accident.

Accident Rates

Most auto insurance companies consider the overall accident rates for your model. People tend to drive certain types of cars differently than others. Even though you might be a careful driver, other people are not. Plus, your rates may be higher if your car is more likely to cause damage than to be damaged.

Theft Rates

Some models are more prone to car theft than others. This is either because they are popular and easy to part out or because they're easy to steal. Either way, you will pay more to insure these models, especially if you live in an area with high theft rates.

Typical Usage

You may have heard sports cars cost more to insure. Statistics say people tend to drive less carefully and are more likely to get into an accident with sports cars. Though not everyone drives them this way, an insurance company still considers them risky to insure.

Other factors may play into your insurance rates. These factors include personal information about you such as your age, your driving history, and daily commute. They are often used in combination with your type of car to determine your insurance rate. If you are planning to buy a new car, be sure to check out the insurance costs, first. An auto insurance agent can give you more information and estimates about specific vehicles.

Contact an auto insurance agency, such as Reinhardt's Insurance Agency, to learn more.

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