When it comes to auto insurance premiums, it’s important to understand the many factors at play, one of which is the make and model of your vehicle. As the president of Dan Burghardt Insurance Agency, I often advise clients that understanding how your car impacts your auto insurance rate is key to managing your insurance costs and avoiding unexpected expenses.
Insurance companies consider the make and model of your car, as well as its body style, age, and safety features when calculating your policy’s cost. Let’s take a closer look at these factors.
Firstly, the type of vehicle plays a big part. Insurance costs for sedans and compact cars are generally lower than for larger vehicles, like SUVs. This is partly due to the built-in safety features, the cost of repairs, and the risk profile of typical drivers of these vehicles. More expensive cars often cost more to insure, due to the higher cost of repairs or replacement.
So, if you’re budget-conscious like many of us, I would highly recommend shopping around for car insurance before taking delivery of your new or used vehicle. This way, you avoid any insurance-related sticker shock that could add unnecessary stress to your finances.
Insurance for an electric car may cost more than insurance for a regular gas-powered car. An electric car’s higher price tag and more complex equipment means it may cost more to repair or replace if it’s in an accident. That can mean higher rates for policyholders who carry comprehensive and collision coverage. Before you decide to drive off the lot with any type vehicle, gives us a call and avoid unfortunate surprises.
Secondly, the safety features of your car can significantly impact your premium. If you invest in a vehicle with robust safety features such as anti-lock brakes, blind-spot detection, adaptive headlights, rearview cameras, and others, you are likely to reduce your risk of an accident. Consequently, insurance companies often provide special discounts for such cars.
Additionally, some companies offer a ‘safe driver discount,’ which could save you up to 30%. However, this usually involves installing a monitor device or a cell phone app to track your driving habits – speed, weaving, hard braking, distracted driving, time of day, mileage, etc. It’s important to note, this tracking can work both ways with some carriers, so be careful not to sign up for an automatic rate increase.
With all these factors in mind, it’s clear that rates can vary significantly based on your vehicle type. To find the best deal on auto insurance, I highly recommend comparing quotes. As an independent agent, my team at Dan Burghardt Insurance Agency can offer you multiple company quotes with just one call. When you engage with a direct writer or a captive company agent, your choice is limited to that one company’s rate. This may require you to spend hours calling one company after the next, getting one rate per call.
With us, we do the legwork for you, making the process of finding the best policy for your car easier. Ultimately, we aim to help you find the best coverage at the best price.
Remember, when it comes to auto insurance, understanding how your car impacts your auto insurance rate can save you significant amounts of money in the long run. At Dan Burghardt Insurance, we are always here to guide you through the process and help you make informed decisions.
–Dan Burghardt, President, Dan Burghardt Insurance Agency
