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How Is Your Vehicle Type Influencing The Insurance Cost

The difference between driving a Lexus or a Ferrari and driving a Honda family car is certainly huge. And so will be the car insurance cost difference, probably tens of thousands of dollars. But the flashy appearance and the crushing value cost are not the only differences that influence the insurance costs. Find out more about how your vehicle type is influencing the costs. Also, get free auto insurance online quotes from our website.

autoNEW - carsThe first difference is age: new versus old.  A brand new car is more expensive to replace or repair, for example, so these vehicles have high premiums. In contrast, a 10-year old car will have a much lower insurance premium because it has less overall value. Ideally, drivers with relatively old cars will benefit from lower premiums. Furthermore, newer vehicles come embedded with all sorts of high-tech devices and systems and they all add value.

Crash ratings are also important and make differences between models of the same brand.  Since insurers rely on statistics, crash ratings are very relevant to them.  It is important to know that consumers have access to crash ratings statistics.   Strong crash ratings for one model over another will also influence insurance rates. For example, a vehicle that lacks strong crash ratings requires a larger insurance premium.

And of course, the major difference between practical and “parade” vehicles.  When drivers purchase that flashy sports car, they’re not normally buying it to keep it stored in a garage for a long time. These flashy vehicles are usually driven at very high speeds with a higher chance of being involved in a crash. In response, insurance companies apply high premiums onto flashy cars compared to practical, compact vehicles that are usually driven within local speed limits.

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