Cars that make insurance go up are usually sports cars, high-end vehicles, and cars with low safety ratings. Insurance companies use many factors to determine insurance premiums, including the car’s potential repair costs and relevant historical trends for the make and model, such as claims and theft rates.
Characteristics of Cars That Make Insurance Go Up
Why It Costs More to Insure
High-performance engines and built-for-speed features mean a higher chance of an accident and expensive parts to repair or replace
High-price vehicles are expensive to replace after an accident
Things like four-wheel drive and bigger engines cost more to repair than their standard versions
Poor Safety Rating
Drivers and passengers are more likely to sustain serious injuries in an accident, resulting in more expensive medical claims
High Theft Rates
Vehicles statistically more likely to be stolen cause more expensive insurance rates
It is important to note that normal liability car insurance won’t cover theft because it only protects other drivers from bodily injury and property damage resulting from an accident you cause.… read full answer
What Insurance Covers If Your Car Is Stolen
Your insurance company will pay your car’s depreciated value, or actual cash value (ACV), minus your deductible, if you have comprehensive coverage.
If your vehicle is financed and you owe more than your car is worth, gap insurance will cover the difference between your car’s actual value and the balance owed.
Although comprehensive coverage will apply if your vehicle is stolen, no type of car insurance will cover theft of your personal items from your vehicle. Your phone, laptop, or other valuables should be listed on your homeowners or renters insurance policy, even if you often leave them in your car.
If your car is stolen, file a police report as soon as possible—ideally within 24 hours. Not only will this improve your chances of recovering the car, but you’ll also need a police report to file a claim with your insurance provider. After you’ve filed a report, you should contact your insurer to start the claims process
No, car color does not affect insurance rates. Whether your car is yellow, black, silver, or any other color, your car insurance will not be affected as car insurance companies don’t even know the color of the car you’re driving. Insurers know your vehicle identification number (VIN), but the color isn’t included in VIN information. Your vehicle’s … read full answermake, model, year, body type, engine size, sticker price, average repair costs, overall safety record, and risk of being stolen all impact the cost of your insurance, but not its color.
Are There Any Car Colors to Avoid?
The only way your car’s color could be a factor in your insurance rate is if you have a custom paint job. Your color could be considered “additional custom parts and equipment,” but you shouldn’t be charged much extra for it. Worst case, it would be a minor additional charge added to your premium.
Although many people believe flashy colors like red and yellow are more likely to be pulled over or encourage riskier driving, there is no statistical evidence to support that. If you’re concerned about the chances of being pulled over, studies show certain models are more likely to be stopped by police, but not certain colors.
When it comes to car color and other risks, white cars have been shown to have the lowest statistical risk of an accident, and car thieves prefer silver, gold, green, black, and white cars. But just like with traffic tickets, certain models are more likely to be stolen, crashed, or ticketed with much greater predictability than certain colors. There is no definitive proof that car color has any measurable effect on safety or risk, so it doesn’t matter for calculating insurance premiums.
Why Do People Think Color Affects Insurance Rates?
If there’s no relationship between color and cost, why do more than 40% of licensed drivers believe red cars are more expensive to insure? The answer could be that red cars (and vehicles in other popular colors) do cost more to buy.
Red, black, white, and blue tend to be the most expensive car colors to buy because they are the most in-demand with consumers. Popular colors keep sticker prices from coming down since dealerships don’t need to negotiate prices for high-demand colors the way they might for less popular ones. The more expensive your car is, the more it will cost to insure it, so in a roundabout way, car color could theoretically affect your rate. In practice, though, color doesn’t impact a car’s value enough to affect car insurance premiums.
No matter what you’ve heard about the color of your car, you’ll pay lower premiums for family-friendly, conservative vehicles and higher premiums for a luxury dream car, regardless of color.
Yes, older cars are cheaper to insure than newer cars. An older vehicle is cheaper to insure because older cars are less valuable, so an insurer won’t have to pay out as much in the event of a total loss. Plus, once the car falls below a certain value, comprehensive and collision coverages to protect the car itself will actually cost more than they’re worth. You can drop these parts of your insurance altogether and save money.… read full answer
But a car’s age actually has less of an impact on insurance premiums than its make and model. If your older car is a popular model with thieves, has hard-to-find replacement parts, or is a luxury car or high-end sportscar, it could cost more to insure than a brand-new car of a different make and model.
When your car is at a higher risk of being stolen, your premiums are likely to be higher, too. You may think that thieves love flashy sportscars, but many older cars are stolen to be dismantled for parts. Popular targets are chosen because their parts haven’t changed much over the years or because so many of them are still on the road.
Top 5 Most Stolen Used Cars (More Expensive to Insure)
1998 Honda Civic (1998)
1997 Honda Accord (1997)
2006 Ford F-150 (2006)
2004 Chevrolet Silverado
2017 Toyota Camry
There are other reasons an older car could be more expensive to insure. For instance, parts can become hard to find for discontinued makers, like Saab, or less popular models. Trouble finding replacement parts drives up repair costs. That increases the price of insuring a vehicle.
So, in general, older cars are cheaper to insure. But if your older car is one of the special cases with higher insurance costs, shop around for the best price. Not all insurance companies treat all older cars the same.
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