A car with high safety ratings and a small engine qualifies for low cost insurance, according to MoneyCrashers.com. Using anti-theft features and investing in a car with a lower risk of theft raises the chances of getting discounts on insurance premiums, notes DMV.org.
Insurers charge premiums based on the size of claims and their frequency, notes Forbes. Cars that are eligible for low-cost insurance have fewer claims and low repair costs. Cheaper cars attract lower insurance premiums due to their ease of repair. An old car attracts a lower premium and is cheaper to replace than a new one, although the older car has a higher risk of being written off in an accident, states MoneyCrashers.com.
Drivers of minivans tend to be more careful and pose a lower insurance risk than those with luxury cars with high-capacity engines, according to Forbes. A high safety rating on a car, influenced by features such as airbags and traction control, minimizes insurance costs due to reduced risk of accidents or injury, says MoneyCrashers.com.
Cars that attract thieves have higher premiums because some insurers factor the risk of theft into the computation of rates, remarks DMV.org. The use of anti-theft devices qualifies a customer for insurance discounts, and states such as New York, Georgia and Washington encourage discounts for use of such safety devices.