When shopping for used cars you are looking for a good deal, and the price of car insurance is a big consideration in that. There are many factors that go into the price of insuring a car, such as age, gender, geographical location, and years of driving experience to name a few. Though many of those things are out of your control, you can control which car you purchase, and that is a huge influencer of the price of insurance. We want you to know what goes into this so you can make an educated guess yourself during the shopping process.
Car insurance is determined based on the risk determined that the driver and the vehicle present. Probably unsurprisingly, when you add more features to your vehicle, the price of insuring said vehicle rises. An obvious example is if you decided to purchase an engine with more horsepower, your insurance is likely to rise because the insurer believes you’re at a greater risk for speeding and getting in an accident. Also, more high-end features means more money to repair, which causes car insurance prices to rise as a consequence.
If you want cheaper insurance, a good rule of thumb is to avoid these types of cars:
- Sports cars – typically more expensive to insure because of the higher speed potential of the vehicle, and if you’re a young person and driving a sports car, the insurance companies will think you are at a higher risk of having an accident.
- Luxury vehicles – luxury vehicles have more expensive parts, and if the vehicle is totaled, it costs more to replace.
- Electric vehicles – Electric vehicles can be more expensive to insure based on their higher price to purchase, and replacing an EV battery costs thousands of dollars.
- Vehicles targeted by thieves – Comprehensive insurance pays out if your car is stolen; it also covers damage from vandalism, fire, floods, and other problems.
If you want cheaper insurance, you should try and purchase a vehicle that has a higher safety rating, and a vehicle that is larger. Owning a vehicle with a high safety rating means there is a lower chance of needing to pay for your or your passengers’ medical bills, which means your rate will be lower. The safety rating is based on several factors, including the likelihood of the car’s owner getting into an accident, and also how likely a passenger is to be injured in an accident. Safety features such as airbags, automatic seat belts, and traction control help make your car safer, which makes you less likely to get in an accident in the first place, as well as making it less dangerous for passengers in worst-case scenarios. Larger cars are generally, but not always, safer than smaller cars in an accident, therefore, many larger cars with good safety ratings have lower premiums than smaller cars with otherwise similar ratings. However, cars with larger engines relative to body size tend to have higher rates – for instance, insuring a sports car with a V8 engine costs much more than a small car with a four-cylinder engine.
These are all simply guidelines, as there are always outliers, but the price of insurance varies from person to person even when buying the same vehicle. To know what your exact rate is going to be, it’s always best to reach out to your insurance agent and consult with them.