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Home » Why Some Cars Are More Expensive Than Others To Insure?
January 17, 2024
Bargain Insurance Connection

Why Some Cars Are More Expensive Than Others To Insure?

When we delve into the world of auto insurance, it becomes apparent that the cost to insure vehicles can differ significantly. Interestingly, a higher price tag on a car doesn’t necessarily correlate with higher insurance costs. Various factors contribute to this unexpected disparity. Now, let’s unravel the mystery behind these cost differences.

First, we’ll explore the role of liability insurance in this equation. Then, we’ll discuss the implications of comprehensive and collision coverage. Lastly, we’ll examine how regional factors, such as Missouri insurance policies, come into play. Remember, understanding these dynamics can help you make more informed decisions about car insurance.

Cars That Are Popular Among Consumers Also Tend To Be Targeted By Thieves.

The popularity of certain car models among consumers often mirrors their attractiveness to thieves. Undeniably, a vehicle’s appeal plays a pivotal role in determining its insurance cost. Statistically, popular models are more susceptible to theft, consequently driving up their insurance premiums. Therefore, the correlation between a car’s popularity and its likelihood of theft is an important factor considered by insurance companies.

Most stolen cars between the year 2020-2022, per Insurance Institute for Highway Safety (IIHS), were the Dodge muscle cars, Charger SRT Hellcat and Charger HEMI.

In 2023 viral trend also pushed certain Hyundai/Kia vehicles into the top 20 most stolen vehicles.

Vehicle Repair or Replacement Costs

Another significant factor in the cost of auto insurance is the expense of repair or replacement. Unarguably, high-end luxury cars come with more costly parts and complex features. This added complexity invariably leads to steeper repair or replacement costs in case of damage or total loss.

As a result, insurance companies anticipate these potential expenses and reflect them in higher premium rates. Consequently, owners of luxury vehicles often find themselves paying more for insurance. Indeed, understanding this dynamic can be enlightening when choosing a vehicle and considering the ongoing costs of ownership.

Insurance adjuster estimating cost of auto insurance claim in Missouri

Factors that Influence Insurance Rates: Understanding Rating Symbols

In the auto insurance industry, each new car model is assigned a unique rating symbol. This symbol serves as a reference point for insurance companies in determining premium rates. Notably, the higher the symbol, the higher the rates tend to be.

Rating symbols are determined by a combination of factors. These include the Manufacturer’s Suggested Retail Price (MSRP), the vehicle’s safety features, and the projected cost of claims based on the model’s historical data. Hence, models with higher MSRP, fewer safety features, or a history of high costs in claims will likely hold a higher symbol.

In essence, understanding the role of rating symbols can prove instrumental in predicting potential insurance costs. Therefore, this tool can greatly assist you in making informed decisions about car purchases and insurance coverage.

Coverage Matters: Liability vs Comprehensive and Collision

Indeed, while liability insurance may seem affordable even for vehicles with high rating symbols, the situation often changes when considering comprehensive and collision coverage. Generally, these types of insurance cover physical damage to, or theft of, the vehicle.

Understandably, vehicles with high rating symbols represent higher risks due to their expensive parts and potential attractiveness to thieves. Consequently, the costs for comprehensive and collision coverage typically soar. This substantial increase in premium rates is a critical factor to bear in mind when choosing a car to purchase and insure.

The Impact of Claims on Premiums in Your State

Regional factors can influence insurance rates, and Missouri is no exception. Particularly in Missouri, the cost of claims significantly impacts auto insurance premiums. For instance, if certain car models are frequently stolen, their insurance costs invariably skyrocket. The reason being, insurance companies have to frequently pay out for these models, and to balance this expense, premiums are hiked.

Now, let’s consider the context of Missouri’s major metropolitan areas, notably St. Louis and Kansas City. Unfortunately, these areas record the highest number of auto thefts statewide. Hence, if you’re a resident of these cities, the chances are that you’ll be paying a higher premium for your car insurance. Therefore, the geographical location of a vehicle, combined with the model’s theft statistics, plays a crucial role in determining insurance costs.

In summary, understanding these regional dynamics can help Missouri residents make more cost-effective choices when it comes to car insurance.

Get an Insurance Quote Before Purchasing a Vehicle

Before finalizing your vehicle purchase, it is crucial to consider insurance costs. To assist you in this, Bargain Insurance Connection steps in. We offer fast, free insurance quotes, ensuring no surprises in auto insurance costs post-purchase. Hence, contact Bargain Insurance Connection for a hassle-free insurance experience. Remember, the right preparation can save you from unexpected expenses.

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