How Does Type Of Car Affect Insurance?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Each automobile is assigned a symbol based upon its year, make and model. The symbol reflects the anticipated cost of paying claims on that vehicle. Vehicles with a high horsepower to weight ratio tend to have a higher incident of claims than 4 door sedans with 4 cylinder automatic engines. This approach tries to make the collection of premium reflect the actual cost of insuring a particular car.
    Answered on September 25, 2014
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  2. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    The type, age, model year etc. of aa car may certainly affect the amount of premium a company charges to insure it. A new car for example, will usually cost more to insure than an older car in part because if the value of the car itself. Likewise, the type and weight of a vehcle may make a difference as well. Insuring a Dodge Ram pickup fr example will cost more in liability premium than a Hyudai Sonata because a pickup can cause more damage and potential injury because of it's increased mass and weight. An insurance compoany uses many different factors in order to develop what they believe is the proper premium to reflect the risk that they are asked to insure.
    Answered on August 31, 2015
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