Reader’s Question:

I will be buying a new car this coming month and now I need to get auto insurance for it, is it true that the kind of vehicle I buy would influence my future rates here in Michigan?

Arthur

Battle Creek, MI

Yes, the kind of car that you buy and insure, although not the deciding factor, would definitely have a significant influence on how your rates there in Michigan would be determined. Auto Insurance company ratings for each vehicle type, model, manufacture and year vary due to the fact that every model and car type have their own pro’s & con’s when it comes to car accidents.

For example, smaller vehicles like SUVs are statistically shown to get involved in more auto accidents than their larger counterparts. One reason for this would be due to the kind of demographic that prefers smaller vehicles, namely teenagers and young adults which is also seen by auto insurance companies as high-risk drivers. It could also be said that drivers tend to be more careful driving a larger car. Smaller cars also have the highest probability of getting totaled in a collision, driving the cost of insurance for replacement in the future even higher.

Aside from this, you also have to take into account the popularity of the kind of car you are buying among car-thieves and dangerously-envious people who might vandalize a top of the line, and very expensive, vehicle if their owners tend to flaunt it around.

It would also be good to note that your driving history, prior auto insurance coverage, where you live, your age and to a certain extent, your credit history would also be major factors to consider aside from the auto insurance company ratings of your car.

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