Calculating rates for auto insurance is a complicated process because companies consider numerous factors to determine the price. If you’re shopping for a new policy and comparing quotes, it’s wise to be aware of the characteristics that influence coverage costs. Here are a few elements to consider as you research insurance prices.

3 Vehicle Factors That Impact Auto Insurance Rates

1. Size

If you own a large car, insurers typically consider it safer than a smaller one in a collision. Companies typically assign lower insurance rates to large vehicles that rank well in safety evaluations compared to small models with closely related safety test results. Safety evaluations include the likelihood of an accident occurring and the nature and extent of the injury.

2. Model

When setting rates for coverage, insurance companies often use claims from other motorists who drive the same model. For example, this application helps explain why sports cars generally have high premium rates when compared to four-door sedans. Multiple claims arising from incidents involving drivers speeding in sports cars often lead to insurers paying out large sums, so they set rates accordingly.

3. Potential for Theft

Auto insurance companies keep track of which vehicles are most popular with thieves. Car models that are hot targets for being stolen have higher rates than those off of the top 10 wanted list. Equipping your car with anti-theft features may help decrease the rate.

However, if your vehicle has high-tech theft-deterrent gadgets and is in an accident, the gadgets may require specialized service for repair or replacement. This type of expense can boost the insurance rate.

Whether you need auto insurance for one vehicle or an entire fleet, turn to Associated Insurance Services in Anchorage, AK. This agency helps its clients determine the coverage they need, then finds them reliable insurance policies. They’ve served the community since 1991, helping individual owners obtain fair rates on their insurance policies. To request a quote, contact them through their website or call (907) 349-2229.