Types of Vehicles

No matter what type of vehicle you own, there is a car insurance company that specializes in the type of insurance coverage you need, whether it is for a classic car, personal vehicles, commercial vehicle, motorcycle, sports car, or recreational vehicle. Why is there a need for different insurance for different types of vehicles and why do the rates vary?

Even if your classic car costs the same as a Mercedes, the insurance premiums will be quite different. Your motorcycle may be worth only a couple thousand dollars, while your used car is worth five times as much, and yet your insurance premiums may be the same. This is because the way insurance companies decide premiums and rates has nothing to do with how much the car costs but on other factors like:

• how much it costs to repair,
• the statistical rate of accidents for a type of car,
• the car's safety standards,
• the car's weight, and
• the likelihood of the car's being stolen.

The type of vehicle is not the only thing that is factored into the final car insurance rate that you are charged. There are a variety of factors that your insurance provider factors into the equation. Two people who are insuring the same type of car under the same conditions may pay wildly different car insurance rates. Some of these factors include:

• your geographic location
• your driving record and the driving records of others you insure on your policy
• your credit record
• your age and gender
• whether or not you park on the street or in a covered garage
• whether or not you have consistently maintained insurance coverage in the past
• whether or not you have installed car alarms and protection devices in your vehicle

Before you purchase your car, do a little bit of research. You may consider trading your car in if it requires too high of an insurance bill for you to handle. Ask your current or prospective insurance provider for discounts and help creating a list of the cars that are the least costly to insure.

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