If you’re in the market for a new car, you’ve probably already considered things such as styling, comfort, features and fuel economy. But have you thought about how much the car is to insure. It may not be obvious but the type of car you drive has a major influence on insurance costs.
Let’s review all the factors.
Your auto insurance is based on many factors. When it comes to those factors directly related to the vehicle itself, insurance companies consider the make, model, and age. Specifically they are looking at the value of the vehicle; it’s size, purpose and lifespan.
High-End Cars, Higher Premiums
Insurance is all about estimating replacement cost. If you drive an expensive car, it will be expensive to insure. Even it’s pre-owned, high-end cars can be more expensive to repair and result in higher premiums.
If you are on a budget and your insurance costs matter, then look to lower cost vehicles to keep your costs down.
Sporty = higher premiums
Sports cars have a higher incidence of accidents. It’s a fact. Therefore they are more to insure. Want a Mustang or Camaro with a big V8? Well, then be prepared for higher insurance costs. Sporty doesn’t always mean fast. Some cars with only 2 seats, like the Mazda Miata are considered sports cars even though they are not exceptionally fast.
Finally, where you live and drive also plays a part in how much your insurance will cost. People living in urban areas where theft and accidents are more likely to occur will usually pay more in car insurance premiums than people who live in the suburbs or rural areas. Where you live also impacts your driving patterns. Commuting long distances to work, for example, puts your car on the road more often and for longer periods of time, increasing your chances of an accident. Likewise, living in rural locations reduces costs.
To learn more about costs associated with your vehicle, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.
What are the safest cars to drive?
A vehicle’s overall safety is determined by its crashworthiness. In other words, its ability to reduce injury in the event of a major collision. Each year the Insurance Institute for Highway Safety (IIHS) performs crash tests on many vehicles and rates their ability preserve the safety of the driver and passengers.
Things have changed quite a bit over the last 30 years. Several decades ago cars were built to prevent damage to the vehicle with little consideration for the occupants. Heavy bumpers and thick steel bodies and frames were employed to reduce the damage during an accident, which was great as long as there were no injuries. However, what insurance companies quickly figured out was that they were paying more in medical costs than they were to fix the vehicles and the medical costs were skyrocketing. Hence a new era was born.
Over the last 30 years or so cars have improved immensely when it comes to passenger safety. Seat belts, headrests, airbags, driver alerts and more all work together to reduce injuries during a collision. But even with all the innovation there are some differences in actual, real-world results. And that’s where the IIHS comes into play.
Safe doesn’t mean expensive.
The IIHS awards the best performing vehicles with its Top Safety Pick award. These vehicles range in price and are not reserved for higher-priced luxury brands. But, if you’re looking for the lastest in safety technology such as lane-change and blind-spot indicators, you may have to spend more to get it.
For a complete list and review of vehicles rated by the IIHS, check out this link: www.iihs.org/iihs/ratings
To learn more about discounts available for safety technology, contact your independent Provident Insurance agent. We serve Plainfield, Greenwood, Avon, Brownsburg, Indianapolis, Carmel, Zionsville and the entire central Indiana area. Stop in one of our convenient locations to discuss your insurance needs today.