Today the cost of insurance is a substantial part of the cost of owning a vehicle. Many times it is overlooked or ignored during the purchase process.

Insurance rates typically are based on the driving record and age of the individual, the geographic location, and the type of the vehicle. A vehicle's design and size will affect the insurance premium it receives as some vehicles protect their occupants better from injury and are less expensive to repair.

Three criteria are used to rate the vehicle, the first being collision loss. This represents the susceptibility and degree of damage sustained in an accident and how much it costs to repair it. Secondly, theft losses are measured. If a vehicle has a high theft ratio, it will be more costly to insure. The third area looked at is medical loss or occupant injury payments. When a vehicle is involved in an accident and it doesn't protect its occupants well the associated medical costs will be higher and it will be reflected in higher insurance premiums.

It is important to select a vehicle that is both safe and economical to operate. Insurance companies may offer special discounts for such safety features as airbags and anti-lock brakes. To determine if the vehicle you are considering for purchase rates well you can check any number of different reference sources available at many public libraries.

You should comparison shop for insurance rates. They will vary widely and shopping could save you money. Before you commit to a particular vehicle, request insurance premium estimates on all models you are seriously considering. If the estimates are high it may influence your final selection.

By Staff