How Does the Type of Vehicle I Drive Affect My Insurance Rate?

Have you ever wondered if the type of vehicle you drive affects your insurance rate? The vehicle you drive does impact the price you pay. Every vehicle has a unique Vehicle Identification Number or VIN. Each character in the VIN provides information about the vehicle and how it is equipped. Information unique to your vehicle is combined with data collected about similar cars to establish a vehicle code or symbol. Insurers use vehicle symbols to help determine the appropriate premium to charge. Data considered in establishing a symbol includes the following:

  • Year, make, and model of the vehicle

  • Claims/typical loss amounts associated with that particular type of vehicle

  • The vehicle’s safety features

  • How often that type of vehicle is stolen

  • Value of the vehicle

  • Value of the vehicle

If you’re in the market for a new vehicle, it is a good idea to contact your Independent Insurance Agent with the options you are considering. Your agent can determine what the cost of insurance will be for each vehicle.