How Car Make and Model Impact Insurance Rates

By the Mercury Team

When it comes to auto insurance, the price you pay isn’t just a random number. Insurance companies use various factors to determine your premiums. While some of these factors are personal to you — e.g., driving record and where you live — others are directly related to the car you drive. In this blog, we’ll go through how a car’s make and model can impact your insurance rates and what you can do to make sure you’re getting the best deal possible.

What Is the Make and Model of a Car?

If you’ve ever shopped for a car or chatted about vehicles, you’ve probably heard the terms “make” and “model” thrown around. But what do they really mean? Let’s break it down:

• Make: A car’s make refers to the manufacturer or brand that produces the vehicle. For example, popular makes include Ford, Toyota, Honda, and Chevrolet. Each make has its own reputation — some are recognized as super reliable, while others are known for being sporty or innovative. In essence, the make gives you a broad idea of what to expect from the car.
• Model: Within each make, there are different models, which are the specific types of cars that brands produce. The model tells you more about the car’s size, style, and features. For example, if you’re looking at Toyota, you expect the Toyota Camry model to be a mid-size sedan and the Toyota Tacoma model to be a two- or four-door pickup truck.

Make vs. Model: Understanding What Determines Car Insurance Rates

Your vehicle’s make and model can play a big role in determining how much you’ll pay for car insurance. Let’s break down how each one can impact your insurance costs.

Car Insurance Rates by Make

The make can influence your insurance rates in a few ways. Some brands are known for producing reliable, safe cars that are less expensive to insure. For example, brands like Honda and Toyota often come with lower insurance costs because they have strong safety records and aren’t as expensive to repair. On the other hand, luxury brands like Audi or Mercedes-Benz tend to have higher insurance rates due to their expensive repair costs and the fact that thieves are more likely to target them.

Car Insurance Rates by Model

The model adds another layer to the insurance equation. Even within the same make, different models can have vastly different insurance rates. For instance, a sporty model like the Ford Mustang might cost more to insure than a more practical model like the Ford Escape. Why? Sports cars are riskier to insure because drivers tend to accelerate fast in them, which may lead to accidents. On the flip side, models that are known for safety and practicality, like the Subaru Outback or Honda CR-V, tend to come with lower insurance costs.

Specific Factors Influencing Car Insurance Rates by Make and Model

Here’s a detailed look at how specific factors tied to your car’s make and model can impact what you pay for insurance:

Age of Vehicle

Generally, newer cars often cost more to insure because they’re more valuable and may have expensive technology that increases repair costs. However, there are exceptions. For example, classic cars may have higher insurance premiums due to their rarity and the potential cost of specialized repairs.

Car Size

Larger vehicles, such as SUVs and trucks, tend to be more expensive to insure because they can cause more damage in an accident. For example, a large SUV like the Ford Expedition may have higher insurance premiums compared to a smaller car like a Honda Fit. However, larger vehicles also tend to offer better crash protection, which can sometimes lead to lower medical costs and slightly reduced premiums in the event of an accident.

Safety Features

Vehicles equipped with advanced safety technologies can often secure lower insurance rates. A car like the Subaru Outback, which includes features like EyeSight Driver Assist Technology and adaptive cruise control, tends to be cheaper to insure than a vehicle without these systems. Insurers favor these features because they reduce the likelihood of accidents, which helps lower the risk of claims.

Engine Size and Performance

Vehicles with larger engines or high-performance capabilities typically come with higher insurance costs. For instance, a high-performance car like the Dodge Challenger Hellcat, with its supercharged V8 engine, is likely to come with higher premiums than a more modest vehicle like the Toyota Camry. Drivers of these high-performance vehicles may drive more aggressively, which increases the risk of accidents and higher insurance premiums.

Trim Level

An often overlooked factor is the car’s trim level. Consider the Toyota RAV4. While the base LE trim is more affordable to insure, the Limited or TRD Off-Road trims can drive up insurance costs because their added luxury features — e.g., leather interiors — are more expensive to repair or replace.

Theft Rates

The likelihood of your vehicle being stolen is another important factor. Certain models, such as the Honda Accord or Hyundai Elantra, are frequently targeted by thieves, leading to higher insurance costs.

Tips for Managing Insurance Rates by Car Make and Model

Here are some tips to help you choose a car that won’t break the bank when it comes to insurance:

Go for Models with High Safety Ratings

Cars with top safety ratings often lead to lower premiums and even auto insurance discounts. For example, vehicles like the Subaru Outback or Mazda 3, which consistently receive high safety ratings from the Insurance Institute for Highway Safety (IIHS), can help you save on insurance. Look for models with advanced safety features like automatic emergency braking, lane departure warnings, and adaptive cruise control.

Choose a Popular, Economical Model

Cars that are widely owned and have a good track record for reliability can be cheaper to insure since they’re usually easier and less expensive to repair or replace. Consider popular models like the Honda Civic, Toyota Camry, and Ford Escape.

Consider the Vehicle’s Theft Rates

Some cars are more prone to theft, which can drive up insurance costs. Before purchasing, check if your desired make and model has a high theft rate and consider choosing a less targeted vehicle.

Avoid High-Performance and Luxury Vehicles

While it might be tempting to drive a sports car or luxury vehicle, these types of cars generally come with much higher insurance rates due to their expensive repair and replacement costs. If lower insurance premiums are your goal, opt for a reliable, mid-range car instead.

Research Before You Buy

Before deciding on a car, it’s smart to get insurance quotes for the models you’re considering. This can give you a clear picture of how much you’ll be spending each month on insurance and help you make a more informed choice.

Conclusion

While several factors go into choosing the right vehicle —like performance, style, and features — considering how insurance rates by car make and model vary can help you save money in the long run.

When you’re ready to insure your new ride, don’t forget to explore cheap auto insurance options with Mercury. We can tailor a policy that fits your needs and budget, ensuring you get the coverage you need without breaking the bank.

Contact us today for a fast, free quote!