Believe it or not the value of your vehicle might not be the only factor directly effecting the cost of your insurance. In fact it may surprise you to know that, for example, the Honda Civic carries a high premium in comparison to many vehicles of the same value. But why?
What effects my auto insurance premium?
Of course your insurance is effected by the standards: the value of your vehicle, your age and gender, the amount of time you spend in your car, and your driving record. However, what you might not realize is insurance rates are also effected by the frequency at which your model of car is stolen.
For example, the 2000 Honda Civic SiR is far more likely to be stolen than the 2001 Chrysler 300M. In fact the Civic is stolen 9 times more often than the average vehicle while the 300M is stolen 9 times less. For this reason it is likely the Civic will carry with it a higher premium than the 300M even though the vehicles are of comparable value.
If you’re shopping for a new vehicle this might be a factor to consider. Vehicles with more theft-prevention features will reduce your risk and so your insurance premium.
What do I do next?
The Insurance Bureau of Canada recently published its Worst and Best Ten list. You can use this document as a guide in determining which vehicles might be effected by high theft rates.
If you’re not sure exactly where your vehicle falls on this list speak with your account manager. Your account manager will have all the answers regarding the premium on your new vehicle.