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  • Writer's picturejoseph retcho

Why Does Car Insurance Change Depending on Your Vehicle?

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If you're a wise shopper looking for a new car, you're probably comparing different makes and models to get the best deal. When budgeting for a new vehicle, considering all costs, including car insurance, is critical. If you want to save money on car insurance, you should know which car models are the least expensive to insure. Continue reading to find out how car insurance rates differ by model and what other factors influence the cost of your premiums.

Why Does Car Insurance Change Depending on Your Vehicle?

When calculating your premium, insurers consider a variety of factors. Car insurance companies typically calculate your rate by estimating the risk of your vehicle and the cost of potential damage claims. Companies may take into account the following vehicle characteristics:

  • Vehicle Trim. Standard, sport, and luxury vehicle rates typically differ, with luxury vehicles being the most expensive to insure. Because your trim package may affect your premium, it's important to provide your insurer with your vehicle identification number (VIN) as well as all of your vehicle's safety features.

  • Body Type. The body type of your vehicle influences its size, safety ratings, and repair costs. Coupes, crossovers, hatchbacks, sedans, SUVs, and trucks are all common body styles. Sports cars, coupes, and trucks are generally the most expensive to insure, whereas crossovers, SUVs, and minivans are less expensive. Keep in mind, that there are always some exceptions to these rules. Some sports vehicles are inexpensive to insure, such as corvettes. Meanwhile, electric vehicles will be the most expensive type of vehicle within any specific vehicle type. It is always best to call your agent with the VIN to be accurate or at the very least, the year, make, and model of the vehicle you have in mind.

  • The retail price. If you select comprehensive and collision coverage, your insurer will be responsible for the cost of repairs if your vehicle is damaged. To compensate for the increased risk, insurers typically charge higher premiums for vehicles that are likely to be more expensive to repair.

  • Ratings for safety. Cars with high safety ratings may be less expensive to insure because they are less likely to be involved in an accident.

  • Parts prices. High-end car models frequently include specialized parts that are more expensive to replace if damaged.

  • Rates of theft. Cars that are statistically more likely to be stolen may have higher insurance costs.

Other Factors Influencing Your Car Insurance Rate

Your vehicle isn't the only factor your carrier will take into account when calculating your rate: the following factors may also influence the cost of your premiums.

Coverage Type

The amount of coverage you select and the cost of your deductible will influence the cost of your car insurance. Purchasing only the minimum amount of coverage required by your state will keep premiums low, whereas adding additional coverage options, such as comprehensive and collision coverage, will increase the cost of your premiums.

*If you lease a vehicle, you must maintain at least the minimum coverage required by the leasing company which usually is $100,000/$300,000, and a collision/comprehensive deductible no more than $1000.


Another factor that can affect your rates is where you live. When calculating your risk, carriers consider your state, city, and zip code. Geo-specific factors such as local crime rates, population density, and crash rates may be considered by insurers.

Characteristics of the Individual

Personal characteristics such as age, marital status, and education may be used to determine your rate. Carriers typically review information from all policyholders.

Credit Rating

Unless you live in a state where credit scores cannot be used to calculate insurance rates, having a good credit history will most likely result in lower rates. Drivers with poor credit can pay up to twice as much for insurance as those with good credit. There are, however, ways to improve your credit score and lower your insurance premiums.

Driving and Insurance Records

If you have recent accidents on your driving record, you will most likely pay more for car insurance than a driver with a clean record. Look for a company that caters to high-risk drivers to keep costs low. It is also critical to avoid insurance lapses in order to keep your costs low.

Other Factors

Besides mentioned above, there are many other factors to keep in mind. Homeownership, paperless billing, automatic payments, bundling policies, insurance apps, metric apps, defensive driving, etc. Each insurance carrier might also have some unique discounts or surcharges that are exclusive to them. It is always best to speak with your agent who can advise the best insurance suited for you.

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