Vermont Car Insurance Companies and Calculating Premiums

When you look at your Vermont car insurance bill, do you know what most of the money is billed for? About half of what you pay for your car insurance premium is for collision and comprehensive coverage.

A car insurance company calculates the premium for collision and comprehensive coverage based on the your vehicle’s loss history. This doesn’t have anything to do with you as an individual. Instead, the insurer looks at statistics on how often that particular model has been stolen and how much the average repair costs following an accident are likely to run.

The exact numbers are part of an insurance company’s formula for calculating rates. While you can’t find out exactly how the it works, you can do your own research to get an idea of which cars are more expensive to insure. Go online to find out which vehicles have the best safety ratings, and these ones will probably cost less in car insurance premiums.

If you are in the market for a new car, you can ask your insurance company to give you quotes for coverage on the models you are considering. Take this step when you have narrowed the field down to two or three choices, and you can make a better buying decision. It’s a good idea to factor in the cost of insurance and repairs when you are trying to decide what type of car to buy.