Many different factors go into setting your car insurance rate. One factor that might surprise you, however, is the make, model, and year of your car. Car insurance companies use a 27-point system – rating a car from 1 to 27 – to determine the amount of coverage you will need, therefore setting the car insurance rate. If you are in the market to buy a new car, using CarInsuranceQuote.com to check what the various makes and models you are considering will cost you for car insurance is a smart idea.
What Influences Your Auto Insurance Policy Costs
Nearly 50% of the price of your policy is related specifically to comprehensive and collision insurance; in other words, the non-medical damages portion of the policy. The car insurance industry looks at a set of factors called the “vehicle loss history” to determine the price of the comprehensive and collision insurance. This includes how much it costs to repair a car as well as how frequently the car is stolen.
Obviously, if your automobile is highly expensive or high up on the “often stolen” list, it will cost more to insure it. For instance, the Cadillac Escalade has a high insurance rate – because it is one of the most stolen cars in the country. Alternatively, another SUV – the Hyundai Santa Fe – is the least expensive car to insure; because it is inexpensive to repair and unlikely to be stolen. When you are choosing your automobile, you should also consider factors such as cost to replace, likeliness to be stolen, and how difficult it is to repair in the case of an accident. Interestingly, the Mercedes-Bens SL costs less to insure than the Nissan GT-R even thought the Nissan is less expensive. Why? Because Mercedes is shipping pre-painted replacement panels that can simply be put on the car without further auto body work needing to be done, saving on repair costs.
The Insurance Services Office (ISO)
An actuarial reporting agency that works with the car insurance industry, determines all of the loss ratio rates. The ISO will not disclose the exact information they use to formulate their car insurance rates, but you can easily use CarInsuranceQuote.com to determine what you will pay for any car you are considering purchasing. Some car insurance companies may provide this information on their websites, but only CarInsuranceQuote.com can access multiple quotes at once at show you which policy offers the best deal.
So many factors determine the rate of your car insurance policy. Being educated and aware of these various points is a critical step in making a smart choice about your personal car insurance policy.