Details of automobiles insured are used as key factors in premium calculations. Cars owned utilize people to do more or less with it. If you own an expensive sports car, insurers assume that you will test its abilities more often than not. Therefore they will include higher chance of accidents and possibly higher damages in them due to speed when they are setting up premiums.
Motorists will be able to see the premium differences between cars when they replace the old one with new. To the surprise of many motorists new premiums can really be very high. So, it is a good practice to get quotes before going ahead and paying for your new automobile. In some cases, your current insurer may not be happy to offer you renewal terms especially if you have a teenage driver listed in your policy and you bought a sports car.
What Auto Features Insurance Companies Take into Premium Calculations?
Specifications of vehicles become extra important when you have Collision and Comprehensive coverage. Companies look at the loss history of the type of vehicle; how did they fair in crashes, how often similar cars are stolen and how expensive it is to repair them. Typical features they need to know and affect car insurance rates are;
- Engine size: affects the speed and the power of the vehicle.
- Body type: determines the sturdiness in the accidents.
- Age and value: puts a maximum limit to how much insurers have to pay in case of total loss.
- Safety and security features: are usual in knowing how well automobiles will protect its passengers and how well it is protected against theft.
- Crash test ratings: are given after extensive tests as to how well they will stand against certain types of crashes and what injuries drivers and passengers may sustain.
How These Features Are Affected by Other Details in the Quote Form?
Who drives the automobile is highly important consideration. An older, more experienced driver may acceptable with a sports car but it would be too high risk with a teenager. They don’t have enough experience to control themselves. If the car is reaching amazing speeding in seconds they would let it fly instead of gentle stepping on the brake. That is why many teenagers have accidents on the curbs and they are very often deadly because they cannot get speeding and braking right.
Similarly, an expensive automobile can be insured at reasonable premiums if owned by a middle age home owner driver with a garage and living in a nice suburban location. But the costs can soar up if the same driver is living in city center and parking it on the road every night.
So, cars for drivers is a relevant correlation used by insurers. A good driver can get away with owning an expensive or sports car and not get stung by insurance rates. You would understand the concerns of companies when a high risk driver approaches them to insure a high end automobile. They will want to make sure that they do not end up paying thousands of dollars in claims.