October 16, 2009

The Worst Cars You Can Drive When Looking For Cheap Auto Insurance

As most drivers know, the type of car you decide to drive directly affects your auto insurance rate. Sometimes, it can be difficult to see why a certain model of car can be so much costlier in terms of auto insurance premiums than another. Overall, auto insurance companies base it on sound statistical reasoning. The most expensive cars to insure tend to be the ones that cost the most for insurance companies when it comes to accident claims. Here's a look at how insurance companies determine insurance rates on a per-model basis.

Auto insurance companies figure premiums by measuring a variety of statistics and variables that help determine the risk they take when insuring a certain customer. These statistics can be skewed when there are a high number of claims from drivers of a certain model of car. If you drive one of these vehicles, you will be labeled a high-risk driver. Regardless of your driving record, a high-risk vehicle will mean higher auto insurance rates. Sports cars, which tend to be driven faster and more recklessly, traditionally have very high insurance rates. However, premiums can also be driven up by cars that simply don't stand up well in an accident or are likely to cause injuries. This will cause an auto insurance company to pay more out for a claim, hence the higher premium.

The worst cars to drive, as far as premiums are concerned, tend to be high-performance vehicles. A study released by the Highway Loss Data Institute indicated that the most expensive models to insure were the Subaru Impreza WRX and Scion tC. These cars are not only statistically unsafe, but they cost more to repair. These higher costs lead to higher auto insurance rates for their owners.

You may be able to gain an auto insurance discount by opting for more family-oriented vehicles, such as minivans and some SUVs. These vehicles typically perform better in safety tests, cost less to repair and have a lower incidence of claims based on who's driving them. Family drivers, as you might have guessed, tend to drive cautiously and are therefore rewarded with much lower auto insurance rates. If you insist on driving a high risk car, you might be able to get an auto insurance discount by taking defensive driving courses, opting for no-fault insurance if it's available and discussing your driving choice with your insurance agent to try to determine other ways to save.

While driving a faster car is fun, the bad auto insurance rates are a significant drawback. Smart drivers should be able to negotiate a bit with their insurers to keep their new rides.