Does the Car You Drive Affect Your Auto Insurance Costs?

Can the type of car you drive raise or lower your insurance costs?

Yes, the make and model of your vehicle may affect your car insurance rate. More expensive cars generally have higher insurance premiums. Auto insurance for a midsize, four-door sedan usually has a standard rate. Insurance rates for trucks and SUVs tend to be higher. Luxury vehicle owners pay even higher rates because parts typically cost more.

Get exceptional vehicle coverage, outstanding service, and extra savings.

AAA Insurance is offered in select locations.

Explore Vehicle Insurance

Will auto insurance for a compact car always cost less?

People may think that compact cars have lower insurance rates, and for good reason. They’re cheaper and cost less to own. But auto insurance premiums for smaller car models tend to be a little higher than, say, midsize cars. Why? Because midsize cars tend to have better safety ratings than small economy cars. That’s especially true if the compact car doesn’t have many safety features.

Bottom line: Compact cars may have lower price tags, but you might pay more for car insurance.

Do power and performance impact how much you pay for coverage?

Faster cars come with greater risk, so they’re more expensive to insure. Powerful, high-performance cars also have more expensive parts and repair costs are typically higher. Most vehicles have aluminum wheels, for example, but some high-performance cars have magnesium or carbon fiber wheels.

Sports cars are usually the most expensive vehicles to insure. They’re powerful, can be expensive to repair, and may have higher theft rates. Some older sports cars lack advanced safety features, driving insurance premiums up even more.

Does where you live and park your car affect your insurance rates?

Yes, zip code is one of the main factors used to calculate auto insurance rates. Two zip codes can be located right next to each other but have different insurance costs.

If you live in a residential neighborhood, you may have lower car insurance premiums than someone living in a more urban area. If you’re downtown, your risk of accidents may be higher, so your monthly premium might reflect that. People who live in rural areas, where there may be less crime, sometimes pay less.

Your auto insurance rates may also be higher if your zip code experiences natural disasters or if a lot of uninsured drivers live where you do, too.