It’s probably time for me to replace my very old car with a new one but I’m still concerned with my car insurance. Does the type of vehicle that I will purchase matter in determining my car insurance rates here in New Jersey?

Gaël

Toms River, NJ

The type of car that you drive is one of the factors that determine the cost of your car insurance in New Jersey. Part of the formula of your insurance cost is the make and model of your car because car insurance companies relate it to the expenses they would have to shell out in an accident or if your car is stolen. When a new vehicle model is introduced, car insurance organizations make a comparison on the probable costs for that vehicle to insure against other car makes and models. While experience builds up for that vehicle, its rating could go up or down and it can influence your premiums for collision and comprehensive coverage.

Based on the vehicle ratings, sports cars and sport utility vehicles (SUV) are just two types of vehicles that perhaps cost more to insure in terms of auto liability coverage. Some car insurance companies evaluate an SUV in another way which is based on the vehicle’s account of causing further damage to other cars during an accident. So if you are purchasing a new car, you must research on its crash test rating and make sure that the car has low insurance losses in real crashes to help you save on your car insurance rates. Aside from the type of vehicle that you drive, other factors include your driving history, credit score, your location, insurance claims history, age, sex, the type of coverage and how much coverage you buy.