To an extent, insurance rates are based on the type of vehicle you drive because insurance companies use historical trends to determine how likely an accident will occur. As an example, a sports car is likely to have a higher insurance rate than a four-door sedan because the insurance company will have to pay a higher fee to repair the vehicle. Factors including how likely it is that a vehicle is speeding, the cost of repairs, and how likely your vehicle will damage another car in an accident are all included in determining a policy premium.
In addition to the type of vehicle impacting your auto insurance premium, so too can the features. When you purchase a vehicle with additional options like a navigation system and audio upgrades, it causes the vehicle’s price to increase. Consequently, it isn’t surprising that the more expensive the vehicle and the more upgrades it has, its costlier will be to insure. With that said, purchasing a car with a strong track record for safety and the latest safety features can equate to a lesser premium.
While it is true that the type of vehicle you drive can impact your insurance premium both positively and negatively, the difference should not deter you from driving your dream car. Ultimately, shopping for the best rate with a professional company like Commerce Insurance Agency can ensure that you aren’t paying more than you need to. Conveniently located in Commerce, GA, the Commerce Insurance Agency prides itself on delivering exceptional service, so give us a call today to schedule a no-obligation consultation.