Car value

According to Jacki Frank, president of operations at Tri-County Agency of Brick Insurance in Brick, New Jersey, rates are based on the value of your vehicle. The more expensive your car, the more expensive it will be to repair or replace it.

As a result, new cars, sports cars, electric vehicles, and luxury vehicles tend to be more expensive to insure. According to Frank, they frequently have extra features such as custom paint jobs, which raises the price of the car — and your insurance bill.

Safety records

Your car's safety record may also have an impact on your rates. A car that is better at avoiding collisions and protecting its passengers means fewer and lower-cost insurance claims.

Carriers also consider the frequency with which claims are filed for each car model. According to the Insurance Institute for Highway Safety, sports cars, for example, tend to attract young drivers, who are more likely to be involved in accidents than older adults. As a result, insurance rates for these vehicles are frequently higher.

Looking for a reliable vehicle that is also affordable? The Subaru Outback, a top safety pick for midsize cars by the IIHS for 2020-21, topped InsuredCircle analysis of the cheapest cars to insure among 2020's 25 most popular vehicles.

High-tech features

Many of the extra features that drivers have come to expect, such as heated seats and blind-spot monitoring, increase your safety and comfort — but at a cost.

When your car is outfitted with the latest gadgets, the cost of repairs — and claims — can skyrocket, according to Frank.

“A windshield replacement on a vehicle with advanced driver-assistance systems can cost three times as much as a standard windshield,” she says.

This is why having a car outfitted with safety features does not always imply lower insurance rates. Although these features generally result in fewer accidents and thus fewer claims, the savings can be offset by the cost of repairing or replacing these features, which can raise the amount of insurance you pay.

Likelihood of theft

Cars that are prone to theft can raise your insurance rates. This is because, if you have comprehensive insurance, carriers are obligated to pay the current market value of the stolen vehicle. This optional coverage also covers damage caused by a collision with an animal, vandalism, floods, and other natural disasters.

Engine size

The size of a car's engine determines how fast it can go. The more horsepower there is, the easier it is to speed — and get into an accident.

Engine sizes frequently differ depending on the car model's version, also known as the trim level. If you want lower rates, consider a trim level with a smaller engine.

What is one factor that does not have a direct impact on your rates? The color of your car. Although red vehicles are commonly associated with higher insurance costs, color is one factor that carriers do not consider, according to Frank. Nonetheless, the color of your car can affect its overall price, which insurers do consider.

Other ways to save

Even if you aren't looking for a new car, you may be able to find lower car insurance rates. Because each carrier uses a different formula to determine your rate, the one you select can have a significant impact on your wallet. Indeed, comparing car insurance rates can save you hundreds of dollars per year.

“Rates vary so much from one carrier to the next that you should shop for your insurance,” Frank says.

Furthermore, she claims that no matter what car you drive, you can save money by avoiding tickets and accidents. Car insurance discounts can also be obtained by bundling coverage or paying for the entire six-month or one-year policy upfront rather than monthly.

“Even if it's a luxury vehicle, insurance doesn't have to cost you an arm and a leg if you do all those other things,” Frank says.