Certain cars require heftier auto premiums
May 30, 2014
The type of car you own can greatly influence the insurance rate you'll receive to cover your vehicle.
Usually cars with a lot of power—such as a BMW M5, a Chevrolet Corvette or an Acura NSX—will cost more to cover. But horsepower and torque aren't the only determining factors. Cars that are frequently stolen might also hike your insurance rates.
Because of its speed, A BMW M5 tends to cost more to insure than less powerful cars.
For instance, did you know that vehicles that are black in color are the most likely to be stolen? According to data from LoJack, a company that specializes in tools that retrieve stolen cars, black automobiles account for more than 20 percent of all stolen vehicles.
Most stolen automobile
The car that thieves are targeting the most is the Honda Accord
, which shouldn't come as much of a surprise because the Accord has been one of the top-selling vehicles for many years in the U.S.
“Year after year, the Honda Accord continues to be a top seller at car dealerships throughout the United States for a variety of reasons, including their reliability,” said Patrick Clancy, the vice president of law enforcement for LoJack Corporation. “That means year after year there are more Accords on the road, getting into car accidents or needing parts for repair.”
Since many car parts are interchangeable for a range of model years, Clancy said thieves can get get up to three times the value of the vehicle if they sell it for parts.
“All of these factors result in an increased demand for parts to service Accords, which makes stealing this make and model a very lucrative business for the professional thief,” he said.
Lowering your premium
If you have a vehicle that's popular among thieves, you might want to consider installing an anti-theft device. According to Wall St. Cheat Sheet, if you put a car alarm into your vehicle
, you can expect to save around 5 percent off your annual insurance premium.
But car alarms aren't the only technology offering insurance breaks.
Some insurers are now offering a monitoring system that tracks driving habits, which enables an insurance provider to offer better rates to drivers they deem to have safe habits.
“Technology has come to almost every part of our life and auto insurance is no difference,” said Angie Hicks, founder of Angie's List. “If you have a safe driving record and you have good driving habits you might consider an insurance company that gives discounts when they monitor your driving behavior through a tracking system.”?
Installing a tracker
Lyndi Cook told KCAU-TV, an ABC affiliate in Sioux City, Iowa, that she recently enrolled in a tracking program offered by her auto insurance provider.
“Our next renewal coming up we saved 10 percent on one vehicle and 5 percent on another,” Cook said.
Experts said the majority of drivers using such a tracking system save money by releasing information such as mileage, when they drive, how fast they go and how hard they apply the brakes to insurers.
“It's perfect for a young driver,” Ranjit Puthran, an Allstate Insurance Agent, told KCAU. “If you have a young driver, a teen driver, and you want them to see how they are driving, what their driving history is, what their habits are—that's a great way for a teen to look at their driving habits and correct those.”
Insurance providers are following the data through a small device that plugs into a port under the car's dashboard. Other insurance companies track a user's driving habits by using the basic stats of programs such as OnStar.