| This isn't old news, but the type of car you buy effects | | | | traffic accidents; and in many cases, the cost to repair |
| your auto insurance rates. The more expensive or | | | | high-performance vehicles is significantly more than |
| high-performance your car is, the higher your premiums | | | | other vehicles. Sport utility vehicles (SUVs) are also |
| will be. Why? It's because the cost to repair a luxury or | | | | weighed as high-liability vehicles. That's because |
| sports car is often significantly more than it is to repair | | | | studies have shown that SUVs cause more damage |
| an economy car. It's a matter of mathematics. Less | | | | in an auto accident than a standard economy or |
| expensive automobiles are not as costly to repair if | | | | sedan model. In this case, some auto insurance |
| they're involved in an accident. For some higher-end | | | | providers increase the liability premiums for |
| cars and trucks, just to replace a side-view mirror | | | | high-performance cars and SUVs. |
| could cost a few hundred dollars. | | | | Before You Buy, Research |
| How Rates are Set | | | | If you want to keep your insurance from skyrocketing, |
| Car insurance companies refer to the Insurance | | | | it's a good idea to do some research before you hit |
| Services Office (ISO) when establishing coverage | | | | the dealerships. For starters, ask your existing car |
| costs. The ISO is a reporting group for the insurance | | | | insurance company for an estimate on a few makes |
| industry that publishes a statistical manual that rates | | | | and models you're thinking about test driving. The |
| vehicles based on the manufacturers suggested selling | | | | quotes you get back will give you an idea of how |
| price, its loss history (if the car is not brand new), and in | | | | much it will cost to insure those makes and models. |
| some cases the vehicles safety liability and theft level. | | | | Having those quotes in hand will also help you keep |
| The ISO establishes a number between 3 and 27 for | | | | your spending under control by reminding you that you |
| each vehicle. The number assigned symbolizes the | | | | also need to consider insurance rates when estimating |
| comprehensive and collision cost/coverage of that | | | | how much you can afford on a new car. |
| vehicle. The higher the number, the more costly it is to | | | | Your age, where you live, and your driving record all |
| cover that vehicle. | | | | play a factor in the cost of your auto insurance. Of |
| Now let's look at a few examples. If you have a car | | | | course, the ultimate factor is the type of car you drive. |
| that is considered an economy car, yet the specific | | | | The difference between insuring a four-door economy |
| make and model you have has a high theft rate (i.e. it | | | | car will be significantly less than insuring a high-priced |
| is stolen more often than other cars on the road), the | | | | sports car. So, if you're shopping for a new car, |
| number the ISO establishes for the car might be high. | | | | remember to keep your future auto insurance |
| For sports cars, the ISO number is normally high | | | | premiums in mind. It will help you make a more |
| because the faster the car, the more prone it is to | | | | informed and affordable choice. |