Insurance premiums depend on several factors, including your age, sex, place
of residence, and driving record; the amount and type of coverage you select;
and whether you drive your vehicle primarily for business or personal purposes.
This explains why one driver might pay a different premium than another for
the same make of motor vehicle.
But why might it cost you more to insure one sport utility vehicle (SUV) than
another?
In addition to the factors listed above, insurance companies also:
- Consider the likelihood that a particular brand of vehicle will be stolen,
vandalized, or involved in an accident
- Track the costliness of repairs
- 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 SUV 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 make of SUV, it may charge higher insurance
rates for that type of SUV than another company would. For that reason, it's
wise to obtain quotes from several insurance companies before insuring your
SUV.
Note: In some cases, the state, not the insurer, decides how each vehicle
is rated.
Please note that this description/explanation is intended only
as a guideline.