🚗WHY ARE CERTAIN CARS MORE EXPENSIVE TO INSURE THAN OTHERS?

Have you ever looked at a car insurance quote and thought, "Wait, why is this newer, more expensive car cheaper to insure than my old one?" It feels counterintuitive, but it happens all the time.

Honestly, the complex math behind insurance pricing is one of my favorite parts of this industry. While a car’s sticker price is definitely part of the equation, car insurance companies look at a much bigger picture when calculating risk and therefore price.

Here are a few behind-the-scenes factors that drive those numbers:

• How the car is driven: Vehicles like minivans and family SUVs usually enjoy lower rates because, statistically, families drive them more cautiously. Lower risk means a lower premium!

• Safety & theft data: Modern safety tech can prevent accidents altogether, and lower theft rates keep physical damage costs down.

• Driver assignment: The way that a driver is assigned to a vehicle, which is usually automatic, can also impact the rate…especially if the driver is a little more risky due to age or driving record.

• Costs to fix: Certain cars such as Audi vehicles can be more expensive to repair because of the more expensive, specialized parts that they require.

  
  

In the end, auto insurers apply a price to a car by looking at statistics such as the likelihood for the car to be in an accident and the overall cost to fix it. 

Understanding the way insurers price risks is where our team at InVision Insurance really gets to shine. We know how to navigate the rating process to help you find that right balance between coverage and a great price. Sometimes, that means getting creative, like exploring whether separating a driver or vehicle onto a different policy makes sense for your family.

If you ever have questions about what’s driving your rate, give our Bell Gardens team a call at (323) 773-4429. We’re always here to talk and help you save!