What Makes a Car Expensive to Insure?

Most consumers are familiar with the reasons their car insurance premiums increase, such as speeding tickets, accidents, claims, poor credit scores, etc. However, few people realize that there are just as many factors involved with a specific vehicle that can cause automobile insurance to be more expensive.

The color of the car, although it may not logically seem to make a difference, actually has a lot to do with the cost of insuring the vehicle. Red cars are statistically more at risk for speeding tickets and accidents resulting from wreckless driving, so insurance companies charge more to insure the vehicle.

The type of vehicle clearly has a lot to do with the cost to insure, especially when dealing with a large one such as an SUV. The insurance companies have been able to statistically prove that larger vehicles cause more damage in the event of an accident, as common sense suggests. There are significantly higher repair costs in such accidents and an increased chance of injury as well. As a result, the insurer charges more to compensate for the increased risk. Along the same lines as the type of the vehicle is the make of the vehicle, which can actually increase the car insurance rates as well. Imported vehicles are typically harder to repair due to the fact that parts must also be imported. Harder repairs cause higher costs which in turn causes the insurance company to charge their insured more.

Automotive engines actually can impact car insurance rates as well, and many companies take engine size into consideration when quoting insurance premiums. A small vehicle with an exceptionally powerful motor is significantly more likely to result in speeding tickets and wreckless driving incidents, at least in the eyes of the insurance companies. An exceptionally large or complex motor can also cause higher car insurance premiums, because it would cost a lot more to repair or replace in the event of an accident.

Another factor that not only increases car insurance premiums, but can cause a denial of coverage as well, is the presence of any aftermarket upgrades to the automobile. Modified vehicles are seen as an unacceptable risk for several reasons, but the main one is that the car is no longer equipped to the original manufacturer's specifications. Warranties can be voided, and the car's suspension or braking system may be less likely to perform as necessary. Many vehicles are enhanced through the use of aftermarket parts and accessories, but insurance companies do not judge on a case by case basis and would rather avoid them all together.

There are a few components of a vehicle that can cause car insurance premiums to decrease, such as the presence of a car alarm and other safety devices. Other safety equipment can include side air bags and even safety glass.

A wise consumer should consider the cost of insuring the vehicle before making any changes or making any purchases. Once an individual knows what to look for and what to avoid, it's possible to find a much cheaper car to insure and will allow for a well-informed decision to be made.