Motorists who have used price comparison websites to obtain auto insurance quotes will already be aware of the fact that auto insurance rates can vary greatly from carrier to carrier. Base rates are established differently by each individual company and most policy offers are made on a basis of risk. There are a number of individual factors that auto insurance companies take into account when they configure their auto insurance rates:
The market value of different vehicles allows auto insurance companies to determine the cost of potential repairs. New vehicle parts tend to be expensive and auto insurance companies are often obliged to provide OEM parts instead of patterned replacements.
Repair Costs and Times
Some vehicles are simpler to repair than others and the complexity of any potential work that may be required will ultimately affect the man hours needed to provide a resolution. The more man hours that are required, the higher the overall repairs costs will be.
Sports models with performance or modified engines will attract higher auto insurance rates than vehicles with lower engine capacities. High-powered engines are usually driven at much faster speeds and this can increase the likelihood of an accident occurring.
Car that have advanced security features fitted to them are less likely to be stolen and these will invariably attract cheap auto insurance rates. The overnight location where a car is kept will also have an effect on auto insurance quotes.
Young drivers and those with a string of motoring convictions will be viewed in a less favorable light than road users with a safe driving history.