The more luxurious or high-powered car you buy, the more you’ll pay for each month. Why will you pay more? It’s mostly because it costs more to repair a sports or luxury car than it does to repair an economy sedan. Below, we will explain how car insurance rates are set.
Setting the Rates
Auto insurers consult the ISO (Insurance Services Office) when they establish coverage rates. The ISO publishes a manual that rates cars based on MSRP, loss history (if not a new vehicle), theft record and safety liability. The ISO gives each vehicle a number between 3 and 27, and that number represents the cost of collision and comprehensive coverage for that vehicle. The higher the number, the more Car Insurance Boston will cost.
For instance: If you drive an economy car that happens to have a high rate of theft, your ISO number will be high. Sports and performance cars are usually high because they’re prone to accidents, and because they cost more to repair. SUVs are considered high-liability vehicles, because studies have shown they cause more damage during a collision than a sedan or an economy car. In these cases, liability premiums are higher.
Research Before You Buy
If you want to keep your auto insurance costs low, you should research before heading out to the dealership. Ask your current insurer for estimates on the makes and models you’re thinking of testing; the quotes you get will tell you about how much Car Insurance expenses in Boston will cost for a particular make and model.
Your location, your age, your driving record and even your credit history can all determine how much you’ll pay for car insurance–but the biggest factor is the kind of car you own. The price difference between insuring a family sedan and a performance or sports car is significant. If you’re in the market for a car, start your search with your Car Insurance Boston in mind, and you’ll make a more informed choice. Click here for more details.
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