7 Things That Affect Your Car Insurance Rates

Author: Tara Struyk / Source: Wise Bread

If you’ve ever shopped around for car insurance, there’s one thing you may already realize: Calculating rates is not an exact science. This is why you can get relatively different quotes from different insurers. It’s also why you should shop around.

That said, your rate is also affected by a variety of factors — some of which you can control, and some of which you can’t.

You probably already know that factors like your gender, age, and driving record affect your auto insurance rates, so we reached out to a few experts to find out what other, lesser-known factors can affect your premiums. Here are a few.

1. The kind of car you drive

You can probably guess that if you drive a $100,000 sports car, you’re going to have very high insurance rates. But there are a lot of other common details about your car that could affect your insurance rates.

According to Mark Nicholson, marketing director at auto marketing company Absolute Results Productions Ltd., these include the safety rating of your vehicle, its size and age, and even the likelihood that it might be stolen.

“Another factor some providers use is how much horsepower your engine has, because by their logic, it suggests that you’re more likely to drive fast and are at greater risk of getting into an accident,” Nicholson says.

This is why when you’re buying a new car, it’s a good idea to call for insurance quotes before you actually make your final purchase decision. If the new car you choose is considerably faster or sportier than the one you’re driving now, that’ll be reflected in a higher insurance rate.

For example, if you’re considering a 4×4 SUV, you need to consider that a factor as well.

“Even if 90 percent of 4×4 SUVs will never be driven off-road, the insurance company will assume you’ll want to take the occasional trek up a mountainside or fly down that dirt path through the woods. That’s a higher risk, and you’ll pay more for it,” says Chris Burdick of Automoblog.net.

Even if you opt for a super-practical family sedan, you still might get stuck with high insurance premiums.

“You’d think that the more common the car, the less insurance will be, but that’s not always the case,” Burdick says. “For example, if you own a Honda Accord, it’s considered to be one of the most stolen cars in the U.S. Same with the Honda Civic, Nissan Altima, Chevy Impala, and Toyota Camry. If you own a car that’s stolen frequently, your insurance company will find that to be a higher risk and your insurance rates will go up accordingly.”

Bottom line? Talk to your insurance company before you choose a new car to ensure that insurance rates for the vehicle you’re considering are in line with what you’re willing or able to pay. (See also: Here’s How a Claim Will Impact Your Car Insurance)