Have you ever looked at your monthly car insurance bill and wondered why you’re paying more than your friends or family members? It can feel arbitrary, but insurers calculate premiums using risk factors that vary by driver, vehicle, and coverage.
At Glacier Insurance, we want to help our customers understand what can affect their bill. Here are four vehicle-related factors that may contribute to a higher car insurance premium:
Repair costs are a major part of many insurance claims, so vehicles that cost more to repair may also cost more to insure. Luxury cars can require expensive or specialized parts. Parts for imported vehicles may also have additional shipping costs or tariffs, and some models can only be repaired by a limited number of certified mechanics.
Vehicles that are frequently targeted by thieves can carry more risk for insurers, which may affect the cost of comprehensive coverage. Cars with high-value, easily removable parts, or without built-in anti-theft technology such as immobilizers or GPS tracking, may be at greater risk.
The National Insurance Crime Bureau (NICB) publishes information about vehicle theft trends. Models that have appeared among the most frequently stolen include:
Insurers use historical accident and claims data to assess risk. The make and model of a vehicle can be one factor in those statistics. Sports cars and other high-performance vehicles may have higher premiums because claims involving them can be more frequent or more severe. Vehicles with less powerful engines and predictable handling may have lower risk in some rate calculations.
Modern safety features, including automatic emergency braking, blind-spot monitoring, and lane-keep assist, can help prevent collisions and protect passengers. They can affect insurance costs in two ways:
Insurance costs depend on more than your vehicle, and the effect of any one factor varies by insurer and policy. Although premiums can be frustrating, reviewing your policy annually is a good way to check that your coverages still fit your needs and see whether you may qualify for savings.
If you’re interested in getting a quote, or you’re a Glacier customer with questions about your policy or selected coverages, please reach out to one of our representatives at (800) 394-2423.