Want a Ferrari California? Make sure you shop for insurance as the prices could vary by as much as 26%, according to a recent study.
Let the buyer beware… or least be careful is the warning insurance buyers should heed based on a new study of car insurance rates by Wallet Hub.com.
“It is wrong to assume a perfect correlation between the price of a car and the insurance cost. Insurance premiums for cars in the same price range can differ by as much as 26%,” according to the study.
The variation in insurance premiums actually increases on more expensive vehicles. Wallet Hub analysts estimated that based on its analysis, only about 25% of the variation in insurance premiums across car types can be attributed to differences in car price.
For example, the annual premium of a 37-year-old, single female driver of a 2014 Ford Fiesta with an exemplary driving record could run anywhere from $1,350 to $2,100, per year, according to the study. Similar patterns prevailed if the same driver insured a Toyota Yaris or a Chevrolet Sonic.
While replacement or residual values decline as vehicles get older, the study also found new sedans, on average, are almost $130 cheaper annually to insure than 3-year-old sedans after accounting for variations in price, the study found.
Car-based crossover vehicles, which are widely used as family vehicles, are also slightly less expensive to insure than a sedan, Wallet Hub reported.
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The study also supported the conventional wisdom that sports cars are more expensive to insure. In fact, manufacturers blame rising insurance costs as a factor in the declining investment in new sports car models.
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But, in terms of cost to insure for typical buyers, sports cars are followed by trucks, which many consumers assume are safer than passenger cars.
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Wallet Hub’s analysts were careful to note that insurance companies use a variety of different variables while setting rates. They reviewed premium data from the California market, based on the assumption that while specific values will obviously vary by state, the key relationships between car type and car insurance premiums will hold true nationwide.
The basic from seven auto insurance companies, representing 38% of the total California market, including Allstate Insurance Co., Geico General Insurance Co., Mercury Casualty, State Farm Mutual, Progressive, SafeCo, Farmers Insurance Exchange. In addition, virtually all of the insurers surveyed operate nationwide.
IME of many years compulsory auto insurance is based on whatever the customers will bear and more. I’ve actually lived in states that did not have compulsory auto insurance laws and the insurance pricing is like day and night different. When you have an industry monopoly and mandatory coverage, it’s easy for the system to be abused – and it usually is IME.
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are many factors which really keep your car insurance premium decrease.
One is, to take into account buying vehicles that are from the good report on car insurance
organizations. Cars which can be expensive are definitely more at risk of
being snatched. Aside from that insurance coverage is also in line with the value of your
car, so the higher in price it is, then the higher this premium you only pay.
I have seen that car insurance businesses know the motors which
are at risk from accidents and various risks. In addition they know what types of cars are prone to higher risk as well as the higher
risk they’ve got the higher a premium amount. Understanding the simple
basics of car insurance just might help you choose the
right sort of insurance policy that should take care of your needs in case you get
involved in an accident. Thank you for sharing the ideas in your blog.
Many thanks for your post. I’d prefer to write my opinion that the tariff of car
insurance varies widely from one plan to
another, for the reason that there are so many different issues which bring about the overall cost.
One example is, the brand name of the motor vehicle will have a massive bearing on the price tag.
A reliable aged family vehicle will have a lower
priced premium than a flashy sports vehicle.
Thanks for the various tips discussed on this blog site.
I have seen that many insurers offer prospects generous discounts if they
prefer to insure several cars with them. A significant volume of households include several
autos these days, particularly those with old teenage youngsters still
residing at home, plus the savings upon policies could soon mount up.
So it is good to look for a bargain.
One thing I want to say is the fact that car insurance canceling is
a hated experience and if you are doing the suitable things being a driver you simply will
not get one. Some individuals do obtain the notice that they
are officially dumped by their particular insurance company they then have to struggle to get additional insurance after the cancellation. Inexpensive auto insurance rates are frequently
hard to get after the cancellation. Understanding the main reasons pertaining to auto insurance
cancellation can help motorists prevent completely losing in one of the most crucial privileges available.
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