Source:
MSN Money on Jan 9, 2009
Which cars cost
more (or less) to insure?
Among the biggest factors
determining your auto insurance rate is the kind of car you drive. Differences
among models can translate to hundreds of dollars a year.
By Insure.com
You
might need a supercomputer to process all the variables that affect your car
insurance premium.
To name
a few, these include your driving record, your claims history, your credit
history, your age, your gender, the type of auto insurance you purchase, where
you live, your annual mileage and the type of vehicle you drive. Though the
whole picture is greater than the sum of its parts, the type of car you buy has
a substantial effect on the auto insurance premium you pay, especially when it
comes to comprehensive and collision coverage.
What
makes your vehicle cost more or less to insure? Insurance companies focus on
"loss history" for your particular model: Is it stolen frequently? Do
insurers pay a lot of accident claims for your vehicle? Is it totaled more than
other cars? Are there usually passenger injuries in a crash? All these factors
play into your premium, along with your own driving habits.
To help calculate the
risk of your car, many insurance companies use vehicle ratings designated by
the Insurance Services Office, or ISO, a statistical and actuarial reporting
group for the insurance industry. The ISO publishes a manual used by insurers
and agents that rates each vehicle based on its loss history, meaning how much
is typically paid out in claims for that car. (The exception is the very first
year of a model, when a percentage of the suggested retail price is used to set
premiums.)
Each vehicle is
assigned a number between 1 and 27 to represent the cost of comprehensive and
collision coverage. A vehicle with a higher number, called a "symbol"
by the ISO, will have a higher premium.
"Insurers may, at
their own discretion, use them without modification, modify them or not use
them," says Jeff De Turris, an assistant vice
president at the ISO. "Many factors other than the symbol also affect the
premium."
What
does this mean to your pocketbook? Insure.com has calculated the average
national premiums to insure the nation's 20 best-selling vehicles:
|
Average
national premiums |
|||
|
2009
model |
Average
premium |
U.S.
sales ranking |
|
|
$1,553 |
9 |
||
|
$1,538 |
6 |
||
|
$1,506 |
3 |
||
|
$1,481 |
2 |
||
|
$1,432 |
19 |
||
|
$1,427 |
7 |
||
|
$1,396 |
15 |
||
|
$1,386 |
17 |
||
|
$1,384 |
11 |
||
|
$1,383 |
14 |
||
|
$1,369 |
10 |
||
|
$1,363 |
18 |
||
|
$1,355 |
13 |
||
|
$1,348 |
8 |
||
|
$1,331 |
4 |
||
|
$1,329 |
5 |
||
|
$1,275 |
1 |
||
|
$1,245 |
16 |
||
|
$1,240 |
12 |
||
|
$1,216 |
20 |
||
/2009 8:45 PM ET