How Your Car Make and Model Impacts Your Insurance Rates


WRITTEN BY: Julia Matseikovich

UPDATED: NOVEMBER 23, 2022 | 3 MIN READ

Insurance companies have a set of factors to determine how much to charge for car insurance. Insurance carriers often charge higher rates for specific makes and car models due to the high rates of accidents, insurance claims, and thefts.

They consider many things, such as your driving record and age. Factors affecting your premium are how much you drive, where you live, and the vehicle you drive. It’s best to research before purchasing a new vehicle to determine how much your car insurance rates might be.

How Vehicle Make and Model Affect Your Insurance Rates

Your vehicle’s make and model affect your insurance rates. Bigger, boxier cars cost more as they cause more damage when in an accident. Older models have lower rates as they cost less to repair.

What do make and model mean?

An automobile “make” is a brand or manufacturer such as Chevy, GMC, Honda, or Cadillac. The term “model” is the specific product made by the manufacturer. For example, Toyota offers a variety of models, including Prius, Tacoma, and Camry. Or Jeep offers a wrangler, Grande Cherokee, and TJ.

How a Vehicle’s Make and Model Affect Car Insurance

If you want a new car and know the make and vehicle model you desire, it’s a good idea to obtain a couple of insurance quotes to see how much car insurance costs on the vehicle you want. Your make and model affect your auto insurance premium based on several factors.

Engine size

Even a car’s engine “horsepower” affects the cost of your insurance policy. Vehicles with big engines often average higher speeds than ones with smaller engines. A motorist who speeds is more likely to get into accidents, so the insurer might assume that a bigger engine means a higher risk, so your insurance costs may be higher.

Theft rates

Some vehicles are stolen more often than others. If you purchase a vehicle that’s often stolen, you’ll likely pay more for comprehensive auto insurance. The ten most frequently stolen cars in the United States are:

  • Ford pickup truck
  • Honda Civic
  • Chevrolet pickup truck
  • Honda Accord
  • Toyota Camry
  • Nissan Altima
  • Toyota Corolla
  • Dodge pickup truck
  • GMC pickup truck
  • Honda CR-V

Vehicle size and type

Insurance providers view sporty or luxury vehicles as higher risk than expensive cars. That’s not surprising since if you cause an accident in the vehicle, the insurance company has to pay to repair, or replace your vehicle and make liability claims.

Even if you don’t buy a small, sporty car, even large vehicles increase your insurance premium. A large SUV due to the damage it inflicts when it collides with another smaller vehicle.

Insurers also charge higher insurance costs for makes, and models with high losses. Getting an idea of a vehicle’s insurance risk might require some research.

  • Nissan Altima: Has a history of high collisions, medical payments, comprehensive coverage, and personal injury claims.
  • Chevrolet Malibu: Has a history of higher-than-average bodily injury, personal injury claims, and medical payments, but average collision coverage, comprehensive, and property damage losses.
  • Subaru Legacy 4WD: Motorists who drive these vehicles file a lower-than-average number of claims for property damage, collision, bodily injury, property damage, and medical payments.

Car Insurance For Leased and Financed Vehicles

The cost of car insurance car depends on your contract if you finance or lease a vehicle. Since your bank had an insurable interest in your vehicle, they have a say in how you insure the car. Auto insurance companies might require more insurance coverage than you would expect.

Standard car insurance policy add-ons for leased or financed vehicle include gap insurance, forced insurance, and very low deductibles.

What is gap insurance?

Gap insurance protects you from being stuck with your car loan if your car is totaled. If you were in an accident, your insurance company would factor depreciation into your claim’s payout. That leaves you on the hook for the loan balance, and you still don’t have a car.

What is low-deductible car insurance?

Most loan or lease agreements require you to maintain low deductibles on your vehicle. Insurer-mandated deductibles typically cost between $250 to $500.

What is forced insurance?

Forced insurance is when a company requires you to get insurance to lease, or finance a vehicle. Forced insurance costs are higher than getting car insurance for yourself. It’s also difficult to remove. It’s essential to read your loan agreement, and provide proof of insurance for the duration of your loan.

FAQs

What is make and model of a vehicle?

An automobile “make” is a brand or manufacturer such as Chevy, GMC, Honda, or Cadillac. The term “model” is the specific product made by the manufacturer.

What can impact the rate of an auto policy?

Some factors may affect your car insurance coverage, such as your driving history, car, demographics, credit score, safety features, limits, and deductibles.

What are the seven factors that impact the cost of automobile insurance?

Seven things that impact the cost of car insurance are age, credit score, gender, insurance history, annual mileage, driving history, and location.

Why do you think the make & model of the car and how often & how far you drive impacts the cost of auto insurance premiums?

That’s due to the manufacturer’s suggested retail price, or MSRP, which varies by trim level. If you choose a model with more features, your insurance rates might be higher. A higher MSRP also means higher repair costs if you’re in an accident.

Can the make and model of a vehicle significantly impact your insurance rates?

Yes, higher-priced cars and boxier, bigger models tend to impact your insurance rates as the vehicles cost more to replace or repair.

What is the difference between the make and model of a vehicle?

An automobile “make” is a brand or manufacturer such as Jeep, GMC, Ford, or Cadillac. The term “model” is the specific product made by the manufacturer.

What are the top ten most stolen vehicles?

  • Ford pickup truck
  • Honda Civic
  • Chevrolet pickup truck
  • Honda Accord
  • Toyota Camry
  • Nissan Altima
  • Toyota Corolla
  • Dodge pickup truck
  • GMC pickup truck
  • Honda CR-V

What is the average automobile insurance premium?

On average, full coverage insurance costs $1,771 yearly. Minimum coverage is $545 annually.

What are the seven factors that impact the cost of an auto policy?

Seven things that impact the cost of an auto policy are age, credit score, gender, insurance history, annual mileage, driving history, and location.

What is the difference between a passenger car and a sports car?

The difference between a sports car and a standard car is its ability to perform at its best on paved surfaces and off-road conditions due to the sports vehicles’ sports suspension, extra luggage space, and sports brakes.

Compare rates for your cars make and model

Purchasing cheap car insurance through a reputable car insurance company is simple and easy. Ensuring you have the right coverage in case something happens is essential. We hope this article has helped you understand your options.

If you’re ready to get insurance quotes for your car, it’s as simple as comparing rates as amounts vary by company. We have a helpful tool to find the best car insurance.