When deciding to buy a car, you probably factor in make, model, price, safety features and more. Car insurance may not be something you consider, but did you know that the make of a car may entitle you to an auto insurance discount? Buy a vehicle that is popular with car thieves, and you may pay more for auto insurance, unfortunately. Buy one that has proved to experience less damage in rollover accidents, and you may save money. Buying a safer car or one that isn’t prone to theft won’t have the same impact on your premium as your credit rating or driving record, but it can affect the bottom line.
Factors that Determine If a Vehicle Qualifies for Car Insurance Discounts
There are a number of factors that determine whether the make of a car, including the model and the year, qualifies for a car insurance discount.
- Safety and Crashworthiness: Safety is the primary reason why the make of the car is so important in determining if it qualifies for an auto insurance discount. The Insurance Institute for Highway Safety has tested the “crashworthiness” of every make and model. Based on the safety and protection a car provides in a crash, make of car and model qualifies for a range of car discounts. It is very possible that the collision insurance premium for an inexpensive car may be higher than that of a more expensive one, based on its crashworthiness, as determined by industry data.
- Theft Rate: The insurance industry compiles theft data for all makes of cars and models by production year. This information is used to develop rating symbols that correspond to factors that companies use to modify the insurance rate for specific makes, models, and model year.
- Cost to Repair: The insurance industry also compiles accident data (type of accident, damage done and cost to repair) for all makes of cars and models by production year. This information is used as well to develop rating symbols that correspond to factors that companies use to modify the insurance rate for specific makes, models, and model year.
- Car Type Factors: There are rating factors that some insurance companies use to modify the rates for types of vehicle, depending on whether their performance is classified as standard, intermediate, high or premium.
Based on all these factors, an insurance company may apply a range of car insurance discounts to certain makes of cars. Each insurance company applies them differently.
Are There Types of Cars that Do Not Qualify for a Car Insurance Discount?
High performance or foreign/exotic sports car will most likely not qualify for a car insurance discount, and neither may a classic red Mustang convertible. These types of cars have a high theft rate and may have a high accident history as well. Some conservative companies will not even insure such high-risk cars.
Which Car Insurance Coverage Is Most Influenced by the Make of Car? There are many components to a typical auto insurance policy, but the three that can be affected by the make of your car are liability, collision and comprehensive, which protects against theft and vandalism, among other things. The premium for collision coverage may see the biggest impact since most car accidents involve a collision and a car’s safety is directly related.