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How your car’s make and model affects your insurance rates

How your car’s make and model affects your insurance rates

Insurance rates in Austin, Texas, differ depending on various factors. Therefore, when looking at the different options available, it is important to understand that there are numerous factors which determine the cost of auto insurance. These factors include your driving history and zip code. However, the most significant determinant of insurance rates is your preferred vehicle’s make and model.

How does it affect your insurance cost?

Luxury cars are expensive, so if you choose to buy a luxurious car, be ready to pay higher insurance rates. Apart from their more costly purchase price, the spare parts and repair services of high-end vehicles are also more expensive. So, finding cheaper auto insurance for such vehicles is not that easy.

Age of your car

An old car is not as highly valued as a brand new one. The insurance company will consider the claim likely to be paid in case your car crashes depending on its age. However, depreciation of vehicles vary among various vehicle models. That’s why some insurance companies may have cheaper rates for some new cars models and higher rates for old car models. But in most cases, the older the car, the cheaper is the insurance cover.

The demand for the car

Usually, some cars have a higher demand in the market, which means that they are likely to appear on the list of the most stolen vehicles. If your car falls on this list, auto insurance will cost you more. The insurance company knows that there is a higher risk of paying out if the vehicle is stolen. Therefore, you will be required to install some anti-theft devices to minimize the risks of losing your vehicle through theft and hence reduce the rates.

Consequently, it is always a good idea to consider the available options when shopping for a car. This will allow you to have an easy time when paying for insurance.

What is the risk?

There are three main things that determine what you pay when it comes to auto insurance rates. These include theft, model, and make statistics. Some models have a high risk of colliding or crashing, while others are more likely to be targeted by thieves. These two factors will impact your insurance rates. Still, you shouldn’t overlook other things that might affect insurance rates such as driving experience and records.

If you’re still unsure, why not contact EZ Insurance Agency for a quote today?