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cars lined up in a lotAuto insurance companies use data from previous claims to make decisions about insurance premiums. Sometimes, they base these decisions on what type of vehicle is most likely to be in an accident. While brands themselves are not necessarily a factor, the type of car can play a role in what you pay. Consider the amount of risk with your vehicle. What factors play a role in what you will pay? Here is some additional insight.

Why Some Cars Cost More to Insure

Considering just the safety of vehicles, there are a few key reasons why some cost more to insure. Those driving a sports car are more likely to speed or be in an accident than those driving a smaller vehicle.

This may mean that brands associated with sports cars seem to cost more to insure than those that are not. For example, you can expect to pay more for a Ford Mustang®. On the other hand, a Ford Escort® may remain very affordable to insure.

It all comes down to risk. Insurance companies base decisions about coverage on past data. They know the vehicles like this may be at a higher risk of having a claim filed due to accidents and injuries. The way people use the car tends to be a key priority here.

The Value of the Car Matters, Too

It is also important to consider the value of the car. Some brands may not be a true sports car but maybe a well-known brand. The vehicle may be very valuable to purchase and insure. If there is a car accident that totals the car, the insurance company is going to have to pay more to replace the vehicle. When it comes to luxury vehicles versus low to moderately priced vehicles, those with a lower value are going to cost less to insure.

This does not mean it is brand-specific though. Some vehicle brands offer both high and low valued cars. It is all about the features of the vehicle and the cost to repair or replace it. Even different line models of the same type of car will cost different amounts to insure.

What Should You Consider Before Buying?

If you plan to buy a high-end brand, consider the cost of car insurance in advance. Any auto insurance agent can offer a basic quote for a vehicle based on the make and model and some details about your driving record. This can give you insight into what you may spend long before you buy the vehicle.

Also Read: Why Driving Under the Influence Raises Rate
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