Flash Demands Cash: Car Models Affect Insurance Premiums
If you care about low cost car insurance, then keep this in mind when shopping for your next automobile; the model of your car affects your insurance premium.
Most auto insurers use a formula devised by the Insurance Services Office, a private risk management organization. The formula accounts for a vehicle’s value as well as its horsepower-to-weight ratio, probabilities of theft, and other factors correlated with a possible loss. The formula yields a rating between 1 and 27, and higher numbers lead to higher premiums.
Which cars are the costliest to insure? Generally speaking, the higher a car’s MSRP (Manufacturer’s Suggested Retail Price), the more expensive it is to insure. Sports cars and luxury cars tend to top the list. Owners of large vehicles that can inflict especially serious damage might also have trouble finding low cost car insurance.
Lists of the top ten costliest and cheapest cars to insure can be found online. However, top ten lists should only be used as a general guideline — your personal information might skew the numbers. When buying your next car, ask several auto insurance companies about their premiums for the cars you’re considering.
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