Which Vehicles Are Considered to Be More Insurance Friendly?


Insurance Friendly CarsWhich Vehicles Are Considered To Be More Insurance Friendly?

Does The Type Of Car I Buy Impact The Cost Of My Insurance?

The type of car that you purchase can have a significant impact on your insurance premiums. Your liability premium, comprehensive premium, and collision premium can all be impacted by the type of vehicle that you purchase. So, which ones are more insurance friendly?

Why Does The Type Of Car I Buy Impact My Insurance Premium?

There are a number of reasons that the type of vehicle you purchase impacts your insurance premiums.   Here are a number of the factors:

  • The weight/mass of your vehicle: The larger your vehicle is, the more damage it will generally cause when it hits people or property. As a result, the larger/heavier your vehicle is, the higher your liability premiums will be. The smaller your vehicle is, the more likely it is that you and your passengers will be injured in the event of a crash. As a result, the liability, no-fault, and PIP premiums on very small vehicles may be higher;
  • Performance Vehicles: High horsepower, performance vehicles have higher premiums for liability and collision coverage.   People tend to drive more aggressively in such vehicles and are more likely to lose control, particularly on wet or dirty pavement. Avoiding high performance vehicles will result in lower premiums;
  • Labor & Parts Costs: In general, mass produced domestic cars will cost less to insure for comprehensive and collision coverage because labor and parts costs are lower. The cost to repair a damaged Chevrolet is usually much less than the cost to repair a damaged Porsche;
  • Attractiveness To Thieves: Certain cars are more prone to theft than others due to either the value of the car or the demand for parts. Vehicles like the Toyota Camry, Honda Accord, and Honda Civic often make “most stolen vehicle” lists. Because so many of them are sold, the demand for their parts is high, thus making them attractive to thieves. High valued vehicles, like Bentleys and Porsches are also targeted by thieves.

Are There Other Vehicle Options Or Traits That Could Impact My Insurance Premium?

Yes, there are. The safety and anti-theft features within a vehicle can impact the chances of a loss and can impact the likely severity of a loss.   Features such as rear and side curtain airbags can help protect occupants and reduce the injuries that occur during an accident. Features like anti-lock brakes, traction control, electronic stability control, lane departure warning systems, and collision avoidance systems can help reduce the frequency and severity of losses.

Anti-theft devices and vehicle tracking services will make it less likely that your vehicle is stolen and more likely that it is recovered (if it is stolen).

Purchasing vehicles with these types of features may help to reduce your insurance premiums.   Make sure you tell your insurance agent about any such features so that your insurance agent can make sure you are getting any policy discounts that you may be entitled to.

Performance Vehicles And Youthful Or Inexperienced Drivers

Inexperienced drivers and high performance vehicles can be a deadly mix.   Inexperienced drivers may not have the skills to maintain control of a performance vehicle or to understand the caution that must be exercised in conditions such as wet pavement, gravel roads, or dirty roads.

Youthful drivers may not have the maturity to understand the risks of dangerous behaviors such as racing, following too closely, and driving aggressively.

As a result, premiums can be quite high for youthful or inexperienced drivers who have high performance vehicles.

Your best bet is probably a mid-sized, low to moderate horsepower, low priced, vehicle that is made in America.

Below are some websites you may find helpful when researching which vehicles you may wish to purchase:

  • IHHS: The Insurance Institute For Highway Safety website provides information on how well drivers and passenger are protected by vehicles in a crash.
  • NICB: The National Insurance Crime Bureau website provides information on how likely your vehicle is to be stolen.

You can work with your insurance agent to get insurance pricing information on different makes and models. Not all insurance companies follow the same pricing algorithms. So, the difference in pricing between two vehicles may vary between insurers.   Your professional insurance agent can help you determine which coverages are right for you and which insurance carrier makes the most sense for you.

Click here for an article on potential automobile insurance discounts that you might qualify for.

Other Enhanced Insurance articles related to car care and purchasing:

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Buyer’s Remorse Law

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Best Used Cars Under $5000

What’s the Best Car Insurance for Younger Drivers

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What Vehicles Are Considered to be More Insurance Friendly

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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.

While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.

Jim Ketterson is an insurance expert with more than 25 years of experience in the industry. He has served as a President of an insurance company, an insurance underwriter, and has held various roles in insurance company product management. He has his Chartered Property Casualty Underwriter designation and a MBA in Finance. The information he offers in his posts is general in nature and may not be appropriate, accurate, or applicable in all situations. Before making any important insurance decisions, you should seek the advice of a qualified insurance agent and discuss the particulars of your individual situation. Follow Jim on Twitter @MNinsurancePro

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