When budgeting for auto insurance, most drivers understand the impact their credit rating, deductible amount and level of coverage requested will have on their premium cost. What about your car? The vehicle you drive will also weigh heavily when it comes to assessing risk and formulating your policy premium. Make sure you understand how the vehicle you drive effects cost to help you better budget and plan.

Theft Reports

The rate of theft associated with your particular model of vehicle will affect your premium. Is your vehicle so popular that an increased number of people have decided to steal them? Is there a design flaw that makes your vehicle model easier to break into than other vehicles? If you answered yes to either of these questions, you probably own a vehicle that has a high risk of theft.

This type of rating translates into a greater risk that can get passed off to you in the form of a higher premium. Don't worry, you don't have to ditch your vehicle to keep your costs lower. Add an after-market alarm system to your vehicle or speak with the vehicle manufacturer about any possible recall safety upgrades they can make to your vehicle. Both of these efforts will increase vehicle security and may lower your rates.

Safety Reports

All vehicles must submit to a vehicle safety test that assesses a rating based on a 5-star system, with 5 stars being the safest. Similar to theft reports, those vehicles with a lesser chance of a safety incident will generally yield a greater savings. In addition to the actual safety test, insurance companies also analyze other independent sources that collect safety feedback.

For instance, take a vehicle that received a 5-star safety rating on its initial testing. If this particular vehicle begins to have a widespread occurrence of an increased risk of vehicle rollovers, this could drive up premium costs for owners of the vehicle. The reason for this is that the elevated rollover risk increases both the likelihood of an accident and the level of expenses necessary to cover the cost of such extensive damage.

If you're shopping for new automobile insurance, make certain you understand the impact your vehicle will have on the cost of your policy. Equipping yourself with this knowledge can help you know what to expect and help you plan for any necessary changes you need to make to your vehicle to keep your cost lower. Contact an insurance agency, such as the Peake Insurance Agency, for more information.