How the Car You Drive Determines Your Insurance Premium

How the Car You Drive Determines Your Insurance Premium

Preferred Insurance in Texas.

Sure, you love your red sports car, but that little speedster could affect your auto insurance premium. It is a good thing to know when shopping for car insurance from providers like Preferred Insurance in Texas.

How Your Car Factors Into Your Premium

Insurance underwriters rely on information from the Highway Loss Data Institute’s research into car accidents to help develop auto insurance premiums. This research comprises statistics about car models and collisions, as well as car models and theft. Statistical analysis of these reports helps drive insurance premiums.

For example, if you drive a car with high safety ratings and a low collision analysis, your premium may fall on the lower end of the spectrum. If thieves love to steal that model, however, then your premium may be higher than average.

Consider Insurance When Buying a Car

Knowing that a car model can affect your insurance premium plays into your car buying process. If you are on a budget, you should factor in the possible premium you would pay.

If this news caught you by surprise and you want to know how much your car might affect your rate, ask an insurance provider like Preferred Insurance in Texas. A professional can help you better understand how your auto factors into your premium.