How Does Your Car Make and Model Affect Car Insurance Rate?

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 The make and model of your car have a significant impact on its insurance rates. As insurance rates rise rapidly across the country, insurance companies are adapting and using different parameters to make the rates more affordable. Some of these include the make, model, trim level, and body style of your car.

Some vehicles have higher rates of insurance due to more cases of theft or accidents. Insurance rates for people with vehicles of the same make and model can also vary depending on individual factors such as age, location, driving history, and how often you drive.

Before you buy a new car, consider factors that will impact your insurance rates such as cost of repair and parts replacement, engine size, likelihood of theft, and more.

What Is the Difference Between Make and Model?

A car’s make is the brand or manufacturer such as Subaru, Toyota, Chevrolet, or Honda. The make is often indicated on any badges, decals, or emblems on the rear of the car.

If you cannot tell the make of the car by inspecting its exterior, you can use its Vehicle Identification Number tracking tool to find out the manufacturer.

The vehicle model is a product under the vehicle manufacturer. For instance, Toyota manufactures different models including the Prius, Camry, RAV4, Highlander, and more. Car models can also be defined by year of manufacture such as the 2022 Toyota Highlander Hybrid.

When an insurer asks you for your car’s make, ensure you provide the brand name. It is also important to note that manufacturers may produce different makes as a result of mergers or acquisitions.

Toyota owns Lexus, Isuzu, Daihatsu, and other companies. These were all stand-alone manufacturers before they were bought by Toyota. If you own any of these brands, it would be inaccurate to say the make is Toyota.

Why Does the Vehicle Make and Model Influence Insurance?

If you are in the market for a new car, it is important to shop around and compare insurance quotes before deciding. Some factors that affect your insurance based on the make and model of the car include:

1. Engine Size

An engine’s horsepower significantly impacts the cost of insurance. Bigger engines are more likely to be driven at higher speeds and are more likely to cause collisions.

Insurance rates for cars with a bigger engine size are higher to mitigate the risk of collision that comes with the advantaged of faster speeds.

2.   Age of The Vehicle

Insurance rates also vary for cars depending on their year of manufacture. Older cars are easier to steal because they are less likely to have modern security features such as car alarms or car tracking systems. Insurers are likely to charge higher rates to mitigate the cost of theft.

Older cars are also typically used by younger drivers as their first vehicle because they are cheaper to acquire.

Younger drivers get into more accidents as they learn how to drive and gain confidence on the roads making them riskier to insure.

3.   Vehicle Type and Size

Depending on the make and model of your car, you might have to pay higher insurance rates. Statistically drivers using small sporty cars are more likely to speed and cause accidents. This translates to higher insurance rates to cushion the insurer in case of collision and liability claims.

Large luxury vehicles such as the Escalade are more expensive to repair and replace and will cost more to insure. These vehicles are usually equipped with high-end features that are more expensive to insure compared to cars with fewer add-ons.

The IIHS ranks different cars according to their insurance risk to help buyers in the market for new vehicles.

4.   Safety Features

Every car has safety features, some basic and others more advanced. The safety features installed in your car significantly affect its insurance rates.

Cars with more advanced features are better protected from theft and collisions which leads to lower risk of claims from the insurance company.

If your car does not have advanced safety features, you are more likely to get into accidents and the risk of theft is also higher. As a result, insurance companies charge you more to take the risk of settling claims.

The NHTSA offers useful insights into which car makes and models are safer to buy through its safety rating tests.

Car Makes and Models with Lowest Insurance Rates

The make and model of your car is one element among many that determines the cost of insurance. Other factors that may affect car insurance rates include:

       Driving record


       Past claims

       Type of auto coverage you choose

       Vehicle usage, business or personal

       Credit-based insurance score

       Recent lapses in insurance coverage, and more.

Based on these factors, insurance providers use different data and analytics to determine your insurance rates. The cars with the lowest insurance rates in 2022 are:

  • Subaru Forester 2.51 Wilderness at $1,353
  • Hyundai Venue SE at $1,360 
  • Honda CV-VLX at $1,366 
  • Mazda CX-30S at $1,379 
  • Toyota C-HR XLE at $1,384

While SUVs continue to be more expensive to insure, the risk factor is informed by the most common owners and drivers of the vehicles listed above.

Some of the most expensive cars to insure are:

       Maserati Quattroporte S GranSport

       Tesla Model S Performance

       BMW M760i xDrive

       Nissan GT-R

       Porsche Taycan Turbo S

       Acura giulia Quadrifoglio

       Dodge Charger SRT Hellcat Redeye

       Audi R8 5.2L V10 Quattro

If you are in the market for new wheels and prefer more upscale vehicles such as those listed above, you might have to pay a higher premium for the risk that their speed and luxury will cost your insurance provider.

These cars often come with top-of-the-line finishes, improved performance, as well as a higher cost of acquisition. However, most of them come with small distribution putting them at a higher risk of causing accidents.

In case of a collision, the insurance provider must fork out more in claims. To mitigate this loss, your insurance rates are going to be higher than average.


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