There are a few misconceptions in auto insurance. People hear from each other and they keep adding to it until it becomes a mambo jumbo and doesn’t even make sense. For example, many say that it is cheaper to insure smaller automobiles. You may think it makes sense and it even rhymes; smaller and cheaper. Why wouldn’t it be true?
Only wish everything was this simple and you could know it straight away by looking at the size of the car exactly how much you are going to pay for insurance premium. However, it is never as simple as that and there are many factors influencing car insurance costs. Surely, the type of automobile you drive plays a very important role.
When insurers are looking at cars they normally look at the crash test results. They are mainly concerned about the injuries to drivers and passengers and possible claims they have to pay as a result. If you are in a car that is a bit more than a chair with wheels how can you expect it to protect you in cases of accidents.
A small car may be worth about $10,000 – $15,000 and writing them off wouldn’t concern most insurers. However, hospital bills can reach up to hundreds of thousands and it is only for one person injured. Furthermore, the cost of the auto is a closed ended equation for the companies as they know the maximum amount they will have to pay in a worst case scenario. However injury claims are open-ended as you have no clue or control over how much they are going to be. I hope it is clear that injuries a car can cause is more important than damages they may sustain on their bodies.
Many people may think that they are fun to drive. It is probably the case and they may be perfectly alright to drive in the cities where traffic flows slowly and parking is a real problem. These cars can par in tight spaces and they may be a lot economical to run. Some may even run on electric or may be hybrid. In general they are cheaper to buy, maintain and keep.
It may not be expensive to insure them as well depending on their type, model and manufacturer. What we are trying to explain here is that they are not going to be cheaper to insure just because they are smaller than most automobiles. It may be smart to get an auto insurance quotes before you buy a smart car and see how much it would cost.
Another area of the statistical data that is a concern for insurers is the auto theft and vandalism. If a vehicle is easy to steal they have a problem with it. For example, expensive cars are not easy to steal even though most criminals want them. They have complicated alarm systems and they have tracking systems. Smaller automobiles are not usually made with the theft conscious design or equipment. Some of the models are so easy to break in that small time criminals start practicing their skills on them. In that case, you may be surprised to find out that it is not cheap to insure it.