I’m Getting Ready To Purchase A New Car. How Does The Make And Model Help Determine The Insurance Premium?

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 16, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

Auto insurance premiums are determined by a great many factors, and every company has its own formula for pricing which is its own proprietary secret. However, there are some guidelines you can keep in mind.

Most of the information used to calculate premiums is statistical in nature: how likely each type of vehicle is to be in an accident, how likely it is to be stolen, what the average repairs cost for common types of damage, etc. This type of information is carefully gathered by the insurance companies and examined in great detail. This is the reason why a sports car is going to cost more to insure then a station wagon – station wagons statistically get into fewer accidents, and when they do, statistically they are less serious. You can argue individual variations all day, but insurance is NOT about the individual, it’s all about the Big Picture.

Getting plenty of safety features on your vehicle will reduce the insurance cost. Sometimes that comes in discounts you can see on your policy, such as a daytime running lights discount. Sometimes it will be invisibly calculated into the base price, such as for a vehicle with ABS brakes and stability control as standard features. But safer vehicles cost less for owners to insure because they cost less for the insurance company to insure – fewer accidents, fewer injuries to drivers and passengers when there is an accident. Theft deterrents will save you some money as well.

The last rule to remember is more expensive vehicles will always cost more to insure then less expensive vehicles, especially when it comes to comprehensive and collision coverage. More expensive vehicles have more expensive parts, more complicated construction, more computers, all adding up to higher average payouts on claims.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption