How Type of Car Affects Auto Insurance Rate

One of the easiest ways to save money on your auto insurance is to understand what factors go into to calculating your rate. Here are some of the factors insurance companies use and where you can go to find out where you rank on this factor:

FICO Score - Another term for your credit score. FICO is a registered trademark of Fair Issaac Corporation, the pioneer of the FICO credit score that's used by many lenders to evaluate consumer credit risk. Scores calculated by credit reporting agencies from models developed by Fair Isaac Corporation are commonly called FICO scores. These scores are derived solely from the information available on credit reporting agency reports. Many insurance companies will increase your rate if your credit score is bad. For a fee you can obtain your FICO score online at www.myfico.com.

Safety rating of your vehicle - The Highway Loss Data Institute and the Insurance Institute for Highway Safety (www.hldi.org) annually publish a summary of the current model year's safest vehicles by category. The vehicles are rated as good, acceptable, marginal, or poor based on performance in high-speed front and side crash tests and evaluations of seat and head restraints for protection against neck injuries in rear impacts. Go to www.hldi.org to find out how your car is rated.

You can also download two free brochures published by the NHTSA, Buying a Safter Car and Buying a Safer Car for Child Passengers from this Web page: www.safercar.gov/pages/ResourceLinksBSC.htm. These brochures help you understand the published rating for frontal crash tests and side impact crash tests for any new vehicle. You'll also learn about seat belts, anti-lock brake systems, electronic stability control, daytime running lights, tire pressure monitoring systems, front and side airbags, and other safety equipment in most new vehicles.

Amount of your deductible - The lower your deductible the higher your rate. If you want to figure how much you will be spending on gas, maintenance etc. based on your driving habits, geographic area and personal situation - so you know if you can go with a higher deductible check Consumer Reports Magazine. Another good resource is the U.S. Department of Transportation Auto Safety Hotline (800-424-9393).

Your driving record - Before approving your application for auto insurance, an insurance company will obtain a Comprehensive Loss Underwriting Exchange (C.L.U.E.) report on you, which discloses any and all insurance claims you've made in the past five years. You can obtain a copy of your report for $9.00 by contacting the ChoicePoint Consumer Service Center at (800) 456-6004. You can also order a report through the ChoiceTrust Asses Company Web site, www.choicetrust.com. The insurance company will also review a copy of your driving record, obtained from your state's Department of Motor Vehicle or Registry of Motor Vehicles.

Hybrid Car - Some insurance companies offer a five to ten percent discount to hybrid car owners. Contact your insurance agent to find out if hybrid discount is offered. If you are considering buying a hybrid check out the site www.hybridcars.com for an independent, unbiased and knowledgeable source. To learn about tax incentives for hybrids check out www.fueleconomy.gov.feg/taxcenter.shtml.

1. Military Personnel Pays Higher Premiums. There is a myth that military personnel pay higher premiums. This is not only untrue, but the opposite is usually true. Many insurance companies offer discounts to those in the military, rescue, law enforcements and teaching fields.

2. Red Cars Cost More to Insure. Another myth is that the color of the car, primarily red, is more expensive to insure. This myth was fueled by the cost of repairs paint colors that were difficult to match. The reality is insurance companies do not take the color of your car into consideration.

3. The Older You Are, the Higher the Premium. This is completely untrue, and usually premiums can go down with age. Each insurance company is different, so different age thresholds may need to be met.

4. One Insurance Policy Covers a Work & Personal Use Vehicle. This is untrue. Your personal car insurance policy does not cover your vehicle for business use. You need to add a rider, or consider a secondary policy to be covered for business use.

5. Old Cars Don't Get Stolen. This is a terrible assumption. In fact, older or classic cars may be more attractive to a thief if they are worth more, or easier to break into. Comprehensive insurance is always recommended and if you don't spend a significant amount of time and money on upgrading or aftermarket work, consider classic car insurance instead.

6. Luxury Car Owners Pay a Higher Premium. This myth is based on the myth that luxury car owners get more tickets, but this has been found to be completely untrue. In fact, the highest number of tickets are shown to be drivers of Hummers, followed by drivers of Scions.

7. Insurance Will Pay for a Rental. Your insurance company may not pay for a rental in the event of theft or damage, even if you have comprehensive and collision coverage. It's important to read your policy carefully and ask for add-ons if you feel you need them.

8. Insurance Will Pay Off the Loan. Some believe that their insurance company will pay off the balance of their loan if the vehicle is totaled. This is a car insurance myth. The truth is that if you have comprehensive insurance and your car is totaled the insurance company will define the value of your car pre-accident and give you the cash for it. You can purchase GAP insurance to help take care of the remainder of your loan.

9. Tickets Will Increase Premiums. This isn't entirely true. It depends on the situation. If you have an otherwise clean record and the ticket is minor, your insurance company will likely leave your rates alone.

10. Personal Property is covered. Many believe the personal property in their car is covered in the event of theft. This isn't necessarily true. Your car is the covered entity, not your belongings. You can cover those items under your home or renters insurance policy.

10) Toyota Highlander SUV ($1,154.02)

9) Ford Escape XLS SUV ($1,150.26)

8) Toyota Sienna V6 Minivan ($1,142.94)

7) Honda Odyssey EX Minivan ($1,138.16)

6) Jeep Wrangler Unlimited Sport ($1,131.27)

5) Nissan Murano SL SUV ($1,127.89)

4) Honda Odyssey LX Minivan ($1,114.62)

3) Toyota Sienna LE Minivan ($1,107.70)

2) Toyota Sienna I4 Minivan ($1,100.66)

1) Chrysler Town & Country LX Minivan ($1,091.80)

10) Mercedes G55 AMG SUV ($3,086.49)

9) Aston Martin DB9 Volante Convertible ($3,088.96)

8) Porsche 911 Carrera S Cabriolet ($3,092.31)

7) Mercedes CL600 Coupe ($3,114.28)

6) Aston Martin DB9 Coupe ($3,120.45)

5) Mercedes S65 AMG Sedan ($3,220.86)

4) Mercedes SL63 AMG Convertible ($3,263.46)

3) BMW 750Li Sedan ($3,280.70)

2) BMW 750i Sedan ($3,280.70)

1) Mercedes SL65 AMG Convertible ($3,543.81)

$832, Hyundai Santa Fe, Midsize SUV

$840, Kia Sportage, Small SUV

$848, Hyundai Entourage, Minivan

$857, Kia Sedona, Minivan

$870, Kia Rio5, Small wagon

$871, Honda Odyssey, Minivan

$881, Smart For two, Small passenger car

$911, Saturn VUE, SUV

$913, Mazda Tribute, SUV

$915, Chrysler Town & Country, Minivan

Ford Fusion

Honda Civic

Toyota Camry

Hyundai Sonata

Toyota Corolla -

Volkwagen New Beattle

Hyundai Sante Fe

Mazda Tribute

VW Tiguan

#20. 2009 Saturn Outlook

#19. 2009 Chevrolet Impala

#18. 2009 Dodge Grand Caravan

#17. 2009 Chevrolet HHR

#16. 2009 Subaru Forester

#15. 2009 Toyota Prius

#14. 2009 Ford Taurus

#13. 2009 Mercury Mariner

#12. 2009 Hyundai Santa Fe

#11. 2009 Mazda MAZDA5

#10. 2009 Ford Ranger

#9. 2009 Buick Lucerne

#8. 2009 Subaru Tribeca

#7. 2009 Kia Optima

#6. 2009 Ford Escape

#5. 2009 Chevrolet Equinox

#4. 2009 Kia Sportage

#3. 2009 Toyota Avalon

#2. 2009 Buick LaCrosse

#1. 2009 Mercury Grand Marquis

10 best cars for older drivers

1. BMW 7 Series
2. Hyundai Veracruz
3. Cadillac SRX
4. Mercedes-Benz E-Class
5. Chrysler 300
8. Nissan Cube
7. Ford Taurus
8. Toyota RAV-4
9. Honda Odyssey
10. Volvo XC60

1 Nissan GT-R Sports car
2 Dodge Viper Sports car
3 BMW M6 Sports car
4 Ford Shelby GT500 Sports car
5 Mercedes-Benz G-Class Large SUV
6 Audi S8 Large passenger car
7 BMW M5 Sports car
8 Hummer H2 Large SUV
9 Lexus IS F Sports car
10 Porsche 911 Sports car
11 Chevrolet Cobalt SS Sports car
12 Jaguar XK Series Sports car
13 BMW M3 Sports car
14 Cadillac XLR Sports car
15 Audi R8 Sports car
16 Land Rover Range Rover Large SUV
17 Cadillac Escalade EXT Truck
18 Honda S2000 Sports car
19 BMW X6 Large SUV
20 Mercedes-Benz SL-Class Large passenger car

Source: Insure.com research.
Averages based on a 40-year-old male driver who commutes 12 miles to work, with policy limits of 100/300/50 ($100,000 for injury liability for one person, $300,000 for all injuries and $50,000 for property damage in an accident) and a $500 deductible on collision and comprehensive. Policy includes uninsured motorist coverage. Rates were averaged across multiple ZIP codes and insurance companies. Average rates are for comparative purposes; your rate will depend on your personal factors.

Honda Civic (1995)
Honda Accord (1991)
Toyota Camry (1989)
Ford F-150 (1997)
Chevrolet C/K 1500 (1994)
Acura Integra (1994)
Dodge Ram Pickup (2004)
Nissan Sentra (1994)
Toyota Pickup (1988)
Toyota Corolla (2007)