Yes, it absolutely does. Car insurance companies have a ton of statistics and historical data they use to help evaluate and determine specific ratings for every year, make, and model of vehicle on the road in Ontario. For this reason, it’s important to compare car insurance prices before you purchase a new or used vehicle.
It’s unlikely for two different cars to have an identical premium, even if all other factors remain unchanged. Furthermore, because each company has their own individual rating criteria, it is also unlikely that two different companies will provide the same premium for the same vehicle. That’s why brokers deal with multiple companies; so we can compare car insurance options and find the right fit for your individual situation with the coverage and price that works for you.
So why is it so important to compare car insurance rates for different vehicles? What makes each car different?
When insurance companies rate vehicles, they consider three main factors:
Insurance companies consider both the frequency and severity of claims. Generally, more claims and more money paid out equal higher risk to insure; and vice versa. This includes a vehicle’s theft rate. Cars and trucks that are stolen more often are usually more expensive to insure because the risk of theft is greater.
Cost to repair
Repairing a car damaged in an accident can be very expensive regardless of the type of vehicle. However, it’s true that some vehicles are harder to repair, have more expensive parts, or may not have replacement parts readily available. In these cases, the overall claim cost can increase greatly. For this reason, insurance companies consider the historical costs to repair or replace specific years, makes and models when determining a vehicle’s insurance rating.
Every vehicle is put through rigorous testing and safety evaluations before being allowed to hit the road. This safety testing evaluates two aspects of safety: crash worthiness and crash avoidance and mitigation. Vehicles that receive better ratings in these categories will generally have a better insurance rating. The reason for this is simple. Vehicles with higher safety ratings are less likely to be involved in an accident. When they are, any injuries to drivers and/or passengers are often less severe.
In all, there are several factors that determine how much you pay for car insurance. Your age, city, experience, claims history, and yes, the type of car you drive will all impact the cost of your car insurance. Keep in mind, every year, make and model has a unique vehicle rating. This rating can vary by insurance company so it’s important to consider all our options.
This is one of the reasons why it’s so important to have an experienced broker who you can trust to shop your car insurance and compare coverage and rates. An experienced broker will offer advice and suggestions. This will help ensure you’re getting the best price and coverage for your vehicle.