Cheapest Cars to Insure Salem MA
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Cheapest Cars to Insure
Auto insurance companies set premium rates based largely on statistical data that shows how frequently claims have been paid over a 3 year period for each car make/model. The assumption is that if a particular model has had a high rate of insurance losses in the past, it will continue to have losses and claims at the same rate in the future. Owners of those models will pay higher car insurance premiums than owners of other vehicles.
Repair cost is a factor in auto insurance cost
Insurance companies look at a number of factors when establishing rates. Collision data is one of the major factors. In insurance terminology, collision coverage pays for accident damages to a vehicle.
If a particular car make and model is expensive to repair or replace, then collision coverage is more expensive. For example, a Mercedes is relatively expensive to insure because parts and labor are expensive and, in case of destroyed vehicles, expensive to replace.
Frequency of accidents is another factor
Another part of looking at collision data is how often a particular vehicle is involved in accidents. Cars that have a high accident rate cost more to insure. Since cars don't have accidents by themselves (actually there was the Audi 5000 back in the 80's), accident rates are directly related to the kind of individuals who drive the cars.
Subaru Inpreza WRX has the highest insurance rate of any vehicle in its class. The reason is not that it is an expensive c...