Insurance premiums depend on several factors, including your age, sex, place of residence, and driving record; the amount and type of coverage you select; and whether you drive your vehicle primarily for business or personal purposes. This explains why one driver might pay a different premium than another for the same make of vehicle.
But why might it cost more to insure one sport utility vehicle (SUV) than another? In addition to the factors listed above, insurance companies consider the likelihood that a particular brand of vehicle will be stolen, vandalized, or involved in an accident. They also track the cost of repairs. They gather their information from claim statistics. The Highway Loss Data Institute, for example, indexes the amount of money insurance companies have paid out (on average) for collision, injury, and theft claims for various types of motor vehicles. Therefore, the SUV that is most attractive to thieves across the country will probably be more expensive to insure than the one that is stolen least often.
Insurance companies also consider their own past claim payouts. For instance, if one company has paid numerous claims regarding a particular make of SUV, it may charge higher insurance rates for that type of SUV than another company would. This is why we shop for your insurance through 40 different companies – to find the right policy for you.