Why Your Vehicle Gets Higher Quotes

Answer:

Insurance companies consider the likelihood that a particular vehicle will be stolen, vandalized, or involved in an accident. They also track the costliness of repairs. Insurance companies obtain their information by consulting various claim statistics. The Highway Loss Data Institute, for example, indexes the amount of money insurance companies have paid out (on average) for collision, injury, and theft claims for various types of motor vehicles. Therefore, the vehicle that is most attractive to thieves across the country will probably be more expensive to insure than the one that is stolen least often.

In addition to these industry wide statistics, insurance companies consider their own experience with claim payouts. For instance, if one company has paid numerous claims regarding a particular vehicle, it may charge higher insurance rates for that type of vehicle than another company would. For that reason, it's wise to obtain quotes from several insurance companies before insuring your vehicle.

Note: In some cases, the state, not the insurer, decides how each vehicle is rated.