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2 Ways That Your Vehicle Can Influence Your Auto Insurance Costs

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Shopping for auto insurance is often a stressful, tedious, and time-consuming task. When you are going through the process of determining what your auto insurance policy will ultimately cost, it can be difficult to understand the exact fees you are paying and why. There are many types of auto insurance as well as many factors that ultimately influence your monthly auto insurance payments. Learning to understand lenders' terms and policies can be difficult enough, but there is one thing that many motorists don't take into consideration when shopping for their auto insurance policy. The fact is, the nature of your vehicle will have a significant impact on your final agreed-upon monthly auto insurance payments. Here are two ways that your vehicle can influence your auto insurance monthly costs.

The Age of the Vehicle

Generally speaking, as your vehicle ages, it will cost you less to insure. There are various reasons why this is often the case. Older vehicles tend to have lower market values than their newer counterparts. Also, because older vehicles have been around for a long time, there is already a steady supply of parts that are available when repairs are needed. The components of each part are often less complex than newer vehicles' parts as well. Abundant and simple vehicle parts make the repair process cheaper and easier, and these benefits are often passed on to motorists in the form of a decreased monthly payment. Parts for new vehicles are often more difficult to find and more expensive due to limited availability. The supply chain and marketplace for a new vehicle's parts can take years to reach a mature, predictable, and cost-effective level. However, there is one caveat. If a vehicle is too old, the parts may no longer be in distribution, and your access to new parts may be limited. In such situations, an older vehicle can be more expensive to repair than a new vehicle.

The Make and Model of the Vehicle

Certain vehicle makes and models cost more than others to insure. These costs are often roughly correlated with the market value of the vehicle. Luxury and sports vehicles are typically quite expensive, so they will usually have far higher insurance premiums than cheaper vehicles such as family station wagons or sedans. Your monthly payment is also influenced by the availability of parts, labor costs, the vehicle's safety features, and more. Increased labor costs are passed on to you as increased insurance costs. On the other hand, vehicle safety features will reduce your insurance premium.

Conclusion

When shopping for auto insurance, it's crucial to be aware of how your particular vehicle may influence your auto insurance premium. If you'd like to learn more about auto insurance, contact an auto insurance provider today!


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