Auto Insurance – Why All Cars Are Not Created Equal

One of the most important factors in determining your auto insurance rates is the type of car you drive.  Sure, we all know that a Maserati will cost more for insurance than a Ford, but would you guess a Volvo is the cheapest of all when it comes to car insurance?

Auto insurance companies look at a bunch of different things that are all part of providing coverage on your car.  For starters, what will it cost to repair your auto in case of a collision?  Owners of fast, sporty cars tend to drive faster and get in more accidents, so that’s why those have higher insurance premiums.  The design of luxury cars, with fancy aluminum body panels, can be more expensive to fix than the sheet metal used in cheaper models.  End result – higher auto insurance premiums.

Do thieves just love your car?  If it’s one of the more popular targets, your insurance will be higher.  It’s not just Mercedes getting stolen – it’s also specific models of Hondas, Nissans, and even a Dodge SRT-4. 

Not everything works against you when it comes to your premiums.  Tomorrow we’ll talk about the car features which can help reduce your auto insurance rates.