Why Does the Type of Vehicle You Drive Affect Your Auto Insurance

When it comes to auto insurance, several factors influence your rates, and one of the most significant is the type of vehicle you drive. At Tackett Insurance Inc. in Memphis, TN, we help drivers understand how their car choice impacts their coverage and costs. Whether you’re driving a compact sedan or a luxury SUV, your vehicle plays a key role in determining your premiums.

Safety Features and Repair Costs

Vehicles equipped with advanced safety features and strong crash-test ratings often qualify for lower insurance premiums. These cars are less likely to cause injury in an accident, which reduces the cost of claims. Conversely, vehicles that are expensive to repair or have a higher risk of theft may come with higher insurance costs. For example, sports cars typically have higher premiums due to their speed and associated risk factors.

Usage and Risk Assessment

How you use your vehicle also impacts your insurance rates. A family minivan used for school runs and errands has a different risk profile than a high-performance car used for long highway commutes. Insurers consider accident data, claim history, and the likelihood of damage when pricing policies. Even the age of your vehicle matters, as older cars may lack modern safety technology or be more prone to wear and tear.

Make Smart Choices to Save

If you’re shopping for a new car, it’s wise to check how your choice might affect insurance costs before making a purchase. At Tackett Insurance Inc. in Memphis, TN, we can provide personalized guidance to help you make an informed decision. Contact us today for a quote and ensure your auto insurance aligns with your needs.