Are you getting ready to purchase a new car? Year, make and model aren’t the only things you’ll want to consider. How expensive, how safe, and how much the car will cost to insure are good things to research. Below are factors that can determine what makes insurance more or less expensive?

Five Things that Can Determine the Cost of Car Insurance

The cost of your auto insurance is generally based on 5 factors:

  1. Your driving record

    Things like past car accidents and traffic violations can affect your car insurance rate. Age can as well, being young and being old can both affect rates.

  2. Cost of repair or replacement of the car

    How expensive it would be to repair or replace your car is one factor in determining how expensive it would be to insure.

  3. Frequency of incidents or claims with your car model

    If your model of vehicle experiences higher than average accidents or problems, it typically results in higher insurance rates.

  4. Cost of the damage the vehicle can cause to others (property and people)

    If you have a large car or one that can cause a lot of damage to property or people, your rate will likely be higher since there is a higher risk of larger claims.

  5. Your insurance company’s own rating

  6. Every insurance company has their own set of rates and rating algorithms, developed by actuaries to help them predict how to best be prepared for the next couple of years. 

Not All Cars Are Created Equal

When an insurance company is determining rates for a given model, they will look at safety ratings, the price of parts, anti-theft features and anti-collision features. If you are purchasing a brand new car, it will likely have good safety features, but those features are typically expensive to replace or repair.

Insurance companies also keep track of the frequency of claims or common issues for different models. If they notice a spike in issues or claims from a certain vehicle, they may raise the rates to help absorb some of that cost.

Top 10 Least Expensive Cars to Insure

Every year Insure.com compares car insurance rates to find the cheapest and most expensive cars to insure. Below are 10 of the least expensive cars they found.

Rank

Make

Model

1.

Honda

Odyssey

2.

Jeep

Wrangler Sport

3.

Subaru

Outback 2.5i

4.

Mazda

CX-3 Sport

5.

Honda

HR-V LX

6.

Honda

CR-V LX

7.

Jeep

Renegade Sport

8.

Ford

Escape S

9.

Subaru

Forester 2.5i

10.

Jeep

Compass Sport

 

This list shows that it may not be the cheapest cars that get the lowest insurance rates. For the most part, many of these cars are family type cars. Assuming they’re family cars, it is likely that they are more cautious drivers, and less likely to have accidents. These family-style cars are often loaded with strong safety features and technology as well.

Whether you’re looking for new car or are wanting to understand your rate better, contact your Farm Bureau agent for assistance.