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Which Have Better Auto Insurance Rates American Cars or Foreign Cars?
November 22, 2019
Many vehicle related factors affect your car insurance rate.
The short answer is the auto insurance premium you pay is impacted by the specific Make/Model/Submodel of the car insured. However, the fact that the vehicle is “foreign” vs. “American” has little impact on your New York State car insurance premiums.
With today’s sophisticated car insurance rating systems, it is a little known fact that the make and model of a car will impact rates for multiple coverage parts in addition to those that pay for physical damage to the vehicle ( Comprehensive and Collision ).
A car’s specific safety statistics can also impact the price paid for:
- Personal Injury Protection and
- Medical Payments
To a greater degree, the cost for Comprehensive and Collision coverages will be affected by a vehicle’s:
- The cost to purchase (replace) the same vehicles
- The price and availability of parts for the car
- The cost of labor to fix that Make/Model of vehicle
- Ease and target for theft
- Damageability (my term) - IE: how easily a car is damaged
There are plenty of American made vehicles that come with a very high cost of replacement, parts, and repair. Here are a few:
- Ford GT
- Saleen S7
- Dodge Viper ACR
You’d be correct to point out that those are all exotic American cars. The point is, that the country of manufacture is not a significant determinant of the cost for car insurance.
There are numerous foreign make and model of cars that have wide distribution with availability of parts, reasonable labor costs to fix, and survive crashes well. The flip side is that there are American cars that don’t score well on any of those standards and carry a higher insurance cost because of it.
Would you like to discuss pricing for your specific make and model of car? We here for you. Please feel welcome to call us at 607-324-7500, or request a quote online at https://www.ryanagency.com/request-a-quote
This article may have been originally published at Quora.com.
To see Jeff's Quora.com profile click here.
“Am I covered if I drive someone else’s car?” Or, “Am I covered if someone else drives mine?”
Many don’t realize that the insurance industry is one of the country's most regulated business segments, especially in New York State. The New York State Department of Financial Services (NYS DFS) wields significant control over the insurance business and has a stated goal of protecting consumers.
Most property insurance companies offer Actual Cash Value or Replacement Cost settlement options. Typically, insurance companies will require that you insure the property to the settlement value you choose. If you select Actual Cash Value, the amount you may be required to insure the property for will be less than the corresponding Replacement Value.
In that spirit, the Ryan Agency is sponsoring a Stearns BBQ Dinner pickup at our office on 57 Broadway Mall in Hornell on September 12th from 3:00 PM to 4:30 PM.
Today, an individual’s credit history can play a more significant role than any one of those traditional factors. Good Credit Scores lead to a Positive Insurance score. A good Insurance Score greatly influences what someone will pay to insure their vehicles.
Insurance companies offer various discounts for which their policyholders may qualify.
Great Eight number Six (6) suggests taking a look at removing Comprehensive and Collision on Older Vehicles.
By reducing the number of claims in your insurance history, you can significantly affect your rates in the future.
Sometimes, this concept meets with resistance from policyholders. The thought of paying more in the event of a claim is off-putting to some. Even if that means I pay more for my insurance.
OK. Admittedly, this strategy doesn't benefit everyone, but it can be very beneficial for those it does. You may have unique home or auto insurance needs that prevent you from bundling with the same company. Alternatively… you might have a better rate without the bundle discount by splitting up your insurance between multiple carriers.
