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Vehicle Factors Affecting Your Auto Insurance Premiums

PHOTO (select to view enlarged photo)
Ferrari 458 Spider (photo by Toby Parsons)

Many people have found themselves confused at the dramatic difference in insurance costs between their vehicles. They are all cars you drive on the road, so you may question why you have to pay more for one vehicle than another. Surprisingly, some vehicle parts and features can dictate your monthly insurance premiums. Read on to find out what some of those might be.


When you start shopping around for auto insurance quotes, you may discover that the age of your vehicles can play a part in how much your premiums will be. The newer your vehicle is, the more it can cost to insure. In most cases, this is because a newer vehicle costs more to buy and, therefore, more to replace. In saying that, beautiful classic cars can sometimes be irreplaceable. Given their high value, they too can cost more to insure.

Make and Model

Insurance companies look at many different factors when establishing their pricing structure. They compare crash rates in certain vehicles and even consider makes and models that have high theft risks. Therefore, you can safely assume that insuring a 950HP Ferrari is going to cost more than a 1990 hatchback.


Features When you compare the safety features of cars today versus those from decades earlier, it’s clear to see that some significant advancements have been made, including air bags, ABS, blind spot warnings, forward collision warnings, traction control, and more. New vehicle manufacturers are doing their best to make us safer on the road than ever before.

Insurance companies often deduce that newer vehicles are safer than older cars due to these features. Therefore, there may be a reduced risk of significant injuries and loss of life compared to older vehicles with fewer safety measures.


A powerful vehicle with a grunting motor and plenty of horsepower can look, sound, and feel incredible. However, many insurance companies have come to the conclusion that a bigger motor can mean faster driving speeds. This rule applies for both vehicle horsepower and motorcycle CC ratings. By default, that may mean an increased accident risk and a higher insurance premium as a result. Keep that in mind when choosing your next high-powered vehicle.

Security It’s easy to think that it’s only worth getting auto insurance for protection in case of car accidents. However, with comprehensive insurance, you sometimes get the added benefit of insurance for theft. How much you pay for that insurance can depend on how secure your vehicle is.

For example, if you park your vehicle on a dimly-lit street with no alarm system, your theft insurance may cost more than if you stored it in a locked garage with security and alarm systems. It may be worth keeping security features in mind when you start vehicle shopping.

When you start the hunt for a new mode of transport, there are so many things to factor into the decision-making process. Aside from the make, model, color scheme, and price tag, spare a thought for any vehicle factors that may affect your auto insurance premiums.