How does my car model affect my car insurance rates?

Tim

Great question.

It’s common knowledge that driving certain kinds of cars will most likely make your insurance rates go up. Cars like flashly sports cars and luxury vehicles, things that are more likely to encourage theft or reckless driving, place you in a different insurance bracket than the family station wagon. Be that as it may, it isn’t a rule.

As a matter of fact, the comprehensive and collision coverage rates for a car depend on the loss history for that individual vehicle, more often than not. Now, considering the types of cars they are, that sports car is still pretty likely to get you in the higher bracket, but you could find some unexpected cars taking you there as well.

Insurers tend to use what are called actuarial companies in order to rate cars and figure out what comprehensive and collision coverage should cost. The company most often used to get these rates is the main one, Insurance Services Office. It assigns a number to each vehicle, and insurance companies use these numbers to weigh the prices of their policies.

Ratings from the ISO aren’t available to the public. Still, you can get an idea by asking your insurer before you buy a new car what kind of rating the cars you’re interested in have. One thing to consider when looking for a car is that SUVs have begun to join sports and luxury cars in the higher rate class, as they tend to cause more damage in collisions.

Cheers,

Fashun Guadarrama.

What’s the difference between insurance for a new car and an old car?

Oliver

The difference isn’t a big one, but it can be important.

It’s like this. They’re both cars, they might even be the same kind of car, the only difference being the year, but your view of them is completely different, and so is an insurance company’s. You want to get more insurance on your new car than on your old one, because, hey, it’s new. Your insurance company wants to charge you more for insurance on your new car because it’s worth more and would cost more to replace, and at the same time people are statistically more likely to drive badly in newer vehicles.

The more you pay for your car, the more you’ll pay for your insurance. This isn’t always the case. Volvos, for example, tend to get cheaper insurance coverage because they have lower theft rates and collision rates. So, when you buy a new car, either be ready to face higher rates, or get a Volvo.

So how do you save on insurance for your new car?

• Get some safety add-ons that protect passengers, like interior padding and collapsible steering columns.
• Get some safety add-ons that keep you from crashing, like anti-lock brakes.
• Find a company that replaces total losses. Some companies now offer to replace a new car with another new car of the same make and model, without deducting for deprecation if that car is in its first year or first 15,000 miles.

Cheers,

Fashun Guadarrama.

How do you know if a car insurance company is a good one or not?

Lillith

That’s an important question to ask, Lillith.

Sometimes, you don’t know. Many companies can appear to be wonderful in every way on the outside, offer you great quotes, give you several discounts and smile the whole time, but in the end they just end up bungling things up.

Still, customer service is very important. One way, though it may seem a little silly, to test a company out is to call their customer service hotline with a question prepared and see what happens. If they put you on hold for an hour and then blow off your question, you’re probably not going to get good, fast service from that company.

Another good way to find out what company is a good one is to talk to managers and workers at car body shops. They work with insurance agencies all the time, and they can tell you which ones they prefer to work with. Follow this same route by getting advice from your friends.

In the end, it’s best to get a more well-known insurance company than some hole-in-the-wall dig. You don’t need to go with the one with the flashiest commercials, or even any commercials at all, but it’s a fact that the smaller, lesser-known companies generally take forever when handling claims, and even if you don’t plan on filing any claims, you don’t know what the future will bring, so you might as well prepare for it.

Cheers,

Fashun Guadarrama.

If it’s raining, snowing, icy, etc. out, then there’s a few safety steps you should follow.

• Slow down. This can’t be stressed enough. You don’t have much traction in harsh conditions, so you need to reduce your speed.
• Instead of keeping 3 seconds behind the car in front of you, change it to 4 seconds, and 5 if it’s nighttime.
• Careful when you brake. Too much pressure on your brakes will make you skid. Keeping a constant, steady pressure is the best way to go with modern anti-lock brakes.
• Go slower and watch out when you come to places where ice forms more readily–bridges, dark areas, intersections, and overpasses. If the sound of your tires over the road suddenly changes, let go of the gas right away. It could be black ice.
• If it’s snowing, stay in the ruts made by other cars.
• Check your traction by carefully putting the brakes while going slow.
• Remember that four-wheel drive isn’t as helpful as you think in ice or snow.
• Or just stay home. That’s some 100% protection right there.

If you do end up losing control of your car in bad road conditions, don’t panic and back it worse. Instead of slamming the brakes and going wild on the wheel, keep your foot off the brake and turn the wheel slowly back in the direction you want the car to face. Braking will just make things worse.

Stay safe,

Fashun Guadarrama.

What types of cars have the worst car insurance rates?

Jules

Good question.

Everyone knows that the type of rates you’ll get on your insurance largely depend on the type of car you have. The flashier, usually, the worse, but even if you have a junky old BMW from the 1980s, you could still be paying a higher premium because BMW parts cost more and are harder to replace than parts for a Nissan or Toyota. So, aside from the obvious, how do you know which cars are more likely to get you charged more?

Statistically, the cars that will get you the best deal include cars such as the Buick LeSabre and the Mercury Grand Marquis, who are among the list of cars that are rarely subject to theft claims; the GMC Yukons or the GMC Sierra, who are less likely to be subject to injury claims; and, again, the Yukons as well as the Ford Excursion and Escape, which have the least amount of collision claims. These cars are better to buy when keeping in mind lower car insurance premiums for the simple fact that the car insurance companies hardly ever hear a word about them.

On the more dangerous end when it comes to higher rates, are foreign cars, flashy cars, sports cars, and cars with lots of added on features. More specific makes and models, though, that will get you the highest rates are the Acura Integra and the Jeep Wrangler, which have a high theft rate; the Suzuki Esteem and the Kia Sephia, which have a high amount of injury claims; and the Lexus IS and the Kia Spectra, who get collision claims filed on them often.

Some of these names are a little surprising. You would expect that Lexus to be up there on the higher theft list, not the Wrangler. All the same, keep these makes and models in your mind when you go looking for a new car. Not only are protecting yourself against having to file a claim in the future by buying a lower-risk car, but your insurance company won’t have anything to pick on you about.

Cheers,

Fashun Guadarrama.

What kind of discounts can you get for different types of cars?

Xochitl

There’s a lot, Xochitl.

• New car. If you’re insuring a car that has never been titled before, lots of insurance companies will give you lower rates because of this. This is a big help, because when you’re making payments on a car you normally have to go for a higher amount of coverage than you normally would anyway, so it lessens the blow of higher premiums for full coverage.
• Economic car. Not only are cars that use less gas usually cheaper, and thus easier to fix and replace, but statistics show that people who drive them tend to get in fewer wrecks than people who drive other vehicles. Because of this, lots of insurance companies will give discounts if you drive an economical car, making things even more economical for you!
• Utility discount. This discount is for available from certain car insurance companies for different kinds of pickup trucks. Compare quotes among agencies and call them up to find out if your pickup truck falls into this category.
• Highly rated cars. Cars with high ratings can receive discounts on car insurance. These ratings state the probability of a car to be wrecked or stolen, among other things, and ratings vary among types of cars.

Hope it helps,

Fashun Guadarrama.