You may think that it is more expensive to insure a sports car than a station wagon. However, as insurance companies become more particular with their insurance rates, many are relying on a number of different factors to determine how much they are going to charge you on insurance. So owning an inexpensive car does not necessarily make your insurance rates cheaper. The same way owning an expensive car does not necessarily make your insurance rates more expensive. For the most part, the type of car you drive and its claim history are more determining factors, rather that the cost of the car, when determining insurance rates. For example, if you are driving an inexpensive car, but it has a record of being stolen or its repair costs are high, you can expect to pay more for your auto insurance premiums than average drivers. The most important factors when determining auto insurance premiums are:
Sticker price - As a general rule, the more expensive the car, the more it is going to cost the insurance company to replace in the case that you are in an accident or it is stolen.
Repair cost - Luxury cars or cars that offer more advanced technology are more expensive to repair than regular automobiles.
Theft rate - If you drive a car that has a high rate of theft, you can expect that your premiums will be higher. For example, the Honda Accord one of the most stolen car in the United States, so if you drive one, chances are the premiums will be higher. Additionally, if you live in a high theft are, you can also expect to pay more.
Year - New cars generally have more power than older cars, and are generally stolen more as well.
Weight - The lighter the car, the more damage that will be inflicted upon it in an accident.
Vehicle type - Luxery cars and sports cars have the highest premiums because they have the highest death rates. Trucks and SUVs on the other hand, will have lower premiums because they are less likely to be damaged in an accident.
Location - If you live in high theft or high insurance fraud areas, your rates will be higher.
Age - Younger and older drivers have higher premiums than middle aged people.
Gender - Men are more aggressive behind the wheel and are therefore in more accidents.
Driving record - if you have a history of poor driving, you will have to pay more for you insurance.