Does the Type of Car I Drive Affect My Auto Insurance Premium?

Certain factors will determine the costs of your auto insurance premium. The factors you can control include how much coverage you buy, the state you live in, and most importantly, the type of car you have. Keep in mind, if you have poor credit this can increase your insurance rates, regardless of where you live.

Before we get into the details on how the type of car you drive affects your auto insurance premium, let’s go through some of the least and most expensive cars to insure, along with their annual premiums.

Least Expensive Vehicles to Insure

Vehicle  Annual Premium


Honda CR-V LX          $1,574


Jeep Compass Latitude         $1,645
Subaru Crosstrek          $1,606


Jeep Wrangler JL Sport         $1,585
Ford Escape S         $1,663


Chevrolet Trax LS          $1,680


Most Expensive Vehicles to Insure

Vehicle  Annual Premium


Lexus RX 350      $2,105


Lexus ES 300H      $2,485


Volvo XC90 T8 Inscription      $2,456
Tesla Model S Performance       $3,960
Nissan Altima 2.0 S        $2,130


Lexus NX 300h      $2,014


Factors That Make a Car Expensive to Insure

Note that a majority of your auto insurance premium cost is based on the type of car you drive. Suppose you file an insurance claim for injuries and your insurer pays a high liability for the specific model you own. In this case, the model will affect the insurance rate of your car. Moreover, hefty repair costs for your vehicle can make it even more expensive to insure.

Plus, if your car has advanced and high-tech safety equipment, such as parking assist, or lane departure warning, it adds to repair costs as such equipment is expensive to replace or repair. Note that past insurance claims for these models also affect your car’s maintenance bill, even if you have a collision and comprehensive policy.

This may also include your vehicle’s value. If a tree falls on your car, you can claim a comprehensive claim to cover the damages. The insurance company will pay according to the car’s current value, subtracting the deductibles. That makes insurance rates of expensive vehicles higher.

Factors Affecting the Cost of Auto Insurance Premiums

The type of car is just one component in the cost equation of your car insurance. Other factors also affect the auto insurance rates, including credits and driving records. Some common factors that may increase insurance rates include;

Summing Up

All in all, many factors play a crucial role when it comes to the cost of your auto insurance premium. While you can’t control factors like age, others, such as driving safely, paying bills on time, and policy type are controllable. Thus, the article explains what type of car may have high insurance rates and why.


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