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How auto insurance rates are affected by the vehicle

There are a lot of variables that can affect your auto insurance rates. Things like credit rating, driving record, yearly mileage and the place you live in have an effect over your premium. However, most drivers seem to forget that their car is the most important variable that will have the biggest weight in the rates they'll be charged with. Depending on the type of car, particular make and model auto insurance can be both cheap and very expensive. So in order to get adequate auto insurance, first make sure to learn how exactly your car can affect your auto insurance rates.

If you think that auto insurance rates are strictly linked to the value of the car you would be partially right. Because the price you pay for the vehicle isn't what insurance companies are looking at when calculating their rates. From the insurer's point of view there are several characteristics used to determine how much it will cost to insure a particular vehicle. These characteristics include safety, repair costs, theft rates, claim statistics and damage to other vehicles. Each car make and model has a specific insurance rating according to these criteria and each company uses own statistics to determine the cost of insuring each vehicle.

Security is very important because it determines the risk of injuries to the driver and passengers. Usually, smaller and cheaper vehicles have less security options that's why they can get higher auto insurance rates. Repair costs can seriously affect your auto insurance premiums because it's the insurer who pays for the repair after an accident. So if it's a costly or a luxury vehicle with expensive repair parts then be ready pay more for auto insurance.

Theft rates are also very important since the company doesn't like assuming the risk of insuring a frequently stolen model with low rates. This risk varies from city to city and doesn't necessary include only expensive vehicles, so make sure to check the statistics as published by the police. Insurance claim rates are probably the most important aspect as they tell the insurer how it is likely for the owner of a particular car model to file a claim. This variable is usually higher for sports cars and muscle cars as they stimulate aggressive driving and end up in serious accidents more often. Damage to other cars is also taken into consideration as it will determine the amount of liability coverage required. It's usually higher for large vehicles such as SUV's as they tend to deliver more damage to other vehicles and the infrastructure thus the higher auto insurance costs.

How auto insurance rates are affected by the vehicle Auto insurance may be costlier for first time buyers