Why Does the Make and Model of my Car Impact my Insurance Rate?

Everyone with a driver’s license or vehicle needs auto insurance because it is required by law. Furthermore, auto insurance can help to alleviate some of the financial stress that accompanies a car accident. Anyone who has owned multiple cars knows that the make and model of a car will impact the insurance rate; however, many people will wonder why. Some of the key information detailing the reasons behind this are explored below.

First, some cars are simply more expensive than others. Therefore, if this car is damaged or destroyed in a car accident, the company would have to pay out a larger claim to cover this cost. To justify this risk, a car insurance company will charge a higher insurance premium to cover these luxury vehicles. Do not be surprised if a luxury car also has a higher insurance rate.

Next, some cars are more likely to be involved in car accidents. Everyone knows that some cars are safer than others and some cars are more reliable than others. If a car is more likely to be involved in a car accident or suffer damage, the company is going to charge a higher policy to cover these vehicles. People should invest in safe cars for a lower insurance rate.

Finally, some cars are more commonly stolen or broken into than others. There are detailed statistics that explain the types of cars that thieves will target. Cars that are more likely to be stolen will have a higher insurance rate than others.

For citizens in the Fort Collins, CO area looking for auto insurance, contact an experienced insurance agent. Evertree Mountain States, serving the Fort Collins, CO will have the information necessary to help every customer find the right coverage to suit their needs.