Ever wonder why some vehicles cost more to insure on your insurance policy than others? Many times you don't find out that the new car you just purchased is going to cost more to insure until it's already sitting in your driveway. Read on so you'll never be surprised again!
Here's the insider's scoop...an independent company rates vehicles on a number of different factors such as construction materials, likelihood of theft losses, cost, etc. and assigns a rating symbol number. These numbers typically range from 02 - 27.
All you need to know for our purposes here, is a higher rating symbol will have a higher insurance premium than one with a lower symbol.
Take a look at these examples:
2008 Mercury Mariner 4x2, symbol 07 = $359/six months
(ex. also 2008 Toyota Yaris hatchback, 2008 Chryser Town & Country LX)
2008 Ford Fusion SE 4cyl, symbol 13 = $417/six months
(ex. also 2008 Chrysler Pacifica AWD, 2008 Toyota Camry LE)
2008 Cadillac CTS AWD, symbol 21 = $565/six months
(ex. also 2008 Dodge Ram 1500 Quad Cab, 2008 Chevy Corvette Z06)
2008 BMW 650i Coupe, symbol 26 = $716/six months
(ex. also 2008 Mercedes GL 4matic AWD, 2008 Lexus LS460)
In these examples the driver is the same and the coverage is the same. The only difference is the vehicle symbol.
Eye opening, right?!!
The next logical question is:
"How am I supposed to know what symbol my vehicle is, or the one I'm looking to buy?"
The declarations page of your current auto insurance policy will typically list each vehicles' symbol (go ahead, dust it off and take a look). And for new vehicles, just give your Ann Arbor insurance agent a call.
P.S. Give the same vehicle and model, color does not affect the insurance premium. So, the answer to our original question, "Do red car cars cost more to insure?" No, they do not cost more given the same vehicle and driver.
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