Car insurance premiums are determined by many factors, such as your age, driving record and location. However, the type of car you drive may make the biggest difference in your policy premium overall. There are many reasons the type of car matters in the fluctuation of the total yearly cost of your auto insurance coverage.

Safety

The Insurance Institute for Highway Safety implements safety tests on vehicles. The organization will then issue a safety rating on the vehicle, which is used in determining insurance premiums. The safer a vehicle is according to these tests, the less the insurance coverage should cost.

Theft History

Vehicles that have a high theft rate, no security system and no VIN etching are likely to have a higher insurance premium. If your vehicle is likely to be targeted by thieves, or that particular make and model has been largely targeted in history, the insurance premium for it will be higher.

Motor

Horsepower and motor size are a large factor when dealing with insurance premiums. Vehicles with bigger motors, lots of horsepower and high speed capability, such as sports cars, are likely to have a higher insurance premium than a vehicle with less horsepower.

Price

Expensive auto models are more likely to have a higher insurance premium because parts for repairs are generally more expensive. A low price tag on a vehicle may mean lower insurance premiums.

Model Year

Newer vehicles will have higher insurance premiums than the same make and model from previous years. Parts for new vehicles cost more than most parts for older vehicles. However, classic cars may have higher premiums because of the high cost and scarcity of parts.

Size

Size matters when it comes to insurance premiums. Many large vehicles, such as SUVs, often cause more damage in a collision, making them more costly to insure. Family sedans are often the safest and the least expensive to insure.

Source:

Insurance Institute for Highway Safety

U.S. News: Car Insurance Costs

Bankrate: Most and Least Expensive to Insure