How Does the Type of Car You Drive Impact Your Insurance Rates? 

Each vehicle type has characteristics that can influence premium pricing. If you’re buying a new car or reviewing your current policy, understanding how insurers evaluate your vehicle can offer insight into what shapes your rates.

Vehicle Factors That May Influence Your Rates

Insurance carriers evaluate several details about your type of car, including its body type, engine size, value and repair costs. Sports cars with turbocharged engines or luxury models often come with higher premiums due to the increased expense associated with replacement parts and repairs. On the other hand, mid-size sedans and smaller vehicles might be rated differently based on claims history and accident statistics for that vehicle category.

Safety features also play a role. Vehicles equipped with features like lane departure alerts or backup cameras may be evaluated differently than models without those technologies. However, not all vehicles with advanced features have lower premiums. Some sensors and integrated systems, while helpful, may be expensive to replace, which can influence rates.

Vehicle Use and Classification

The purpose of your car matters. A personal-use commuter car driven a few miles each day may be treated differently from a delivery vehicle or rideshare car that racks up significant mileage. Vehicles designed for business or commercial use often require different types of policies with different rating factors.

Additionally, the vehicle’s classification matters. A pickup truck used for personal errands has a different profile than a truck modified for heavy hauling or construction.

It’s also important to consider your vehicle’s age. Older cars might not carry full coverage options due to their depreciated value, while newer cars may qualify for additional policy features. Electric vehicles and hybrids can fall into specialized categories depending on parts, battery systems and manufacturer specifications.

Contact Us

If you’re thinking about buying a new car or have questions about how your current vehicle influences your coverage, contact Prime Time Insurance Services.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.