Have you ever wondered why insurance premium rates change with the car models? If not, you should always review the cost of new car insurance and that of old insurance. By doing this, it will prevent from getting into the financial trap. The insurance cost of a new car is usually higher than the old vehicle. Below are other factors that influence insurance premium rates:
Auto theft rates
The auto theft of the exotic and new vehicle is always much higher compared to the auto theft of average and older style vehicle. It is merely because of differences in the enormous value compared to the older car.
The cost of repair
Repair rates of the new vehicle are usually higher compared to that of the old car. As a result of this fact, the insurance premium rate will increases.
Car Model or make
Car model or make is another factor that greatly influences the insurance rates of an automobile. Insurance companies usually use the actuarial statistic that shows the previous loss experience on a particular make or model of car.
Also, it is essential to note that the model of a vehicle can place insurance company at higher risk. Let’s say insuring the most expensive cars make like Hammer. These types of cars are meant to perform in the off-road environment.
You should never assess once you’ve bought a car. It will be too late to make urgent changes. The best time to make an assessment is before purchasing the vehicle. Definitely, you would love to make both insurance premium and cash payments. Get your free car insurance quote in advance and prevent financial setbacks.