How Does Your Type of Car Affect Your Insurance Rates?

Last Updated on December 10, 2025

You finally decided to upgrade your ride, trading in an older Chevy Malibu for a much newer Nissan Altima. The newer model, lower mileage, and updated tech all feel great… until you get your renewal notice and see that your auto insurance rates are going up. What gives?

As many drivers find out the hard way, the year, make, and model of your car can have a big impact on your auto insurance rates. Insurers don’t just look at you—they also look closely at the vehicle you’re driving.

Along with factors like your age, where you live, and your driving history, the specific car you choose plays a major role in how much you pay.

Key Takeaways

1. Insurers don’t just price you—they price your specific year, make, and model based on crash, theft, and repair data.
2. Vehicles that are frequently stolen, crashed, or expensive to repair almost always cost more to insure, even for safe drivers.
3. Location matters: the same car can be cheaper or more expensive to insure depending on local theft rates and claim frequency.
4. You can lower costs by choosing cars with strong safety ratings, modest repair costs, and fewer theft claims—and by getting insurance quotes before you buy.

How Insurers Use Your Vehicle Information

Some of the same data that influences rates by ZIP code also influences rates by vehicle type. Insurance companies constantly analyze:

• How often certain vehicles are involved in accidents
• How often they’re stolen or vandalized
• How severe the claims are when they do crash
• How expensive they are to repair or replace
• Where those losses are happening (city vs. rural, certain states, etc.)

Insurers look at local, statewide, and national vehicle data to see which models are generating the most and biggest claims. If a certain type of car tends to be involved in more severe crashes or is costly to fix, the premiums for that vehicle will be higher—even if you personally have a clean record.

Type of Vehicle Factors That Affect Your Rate

Different vehicle types come with different risk profiles. A few examples:

• Pickup trucks – Pickup trucks have historically been more likely to roll over in certain types of crashes and can be more expensive to repair than a small sedan. Even though newer trucks have improved safety features, many still trail well-designed cars in safety ratings.
• SUVs and crossovers – Often safer in some collisions due to size and height, but can be costly to repair and may have higher claim severity.
• Sports cars and performance vehicles – Built to go fast, which increases the likelihood of speeding, hard braking, and severe accidents. Parts and repairs are also usually more expensive.
• Luxury vehicles – High-end electronics, advanced materials, and specialty parts can dramatically drive up repair and replacement costs.
• Compact and mid-size sedans – Frequently cheaper to insure if they have strong safety ratings, modest repair costs, and aren’t a big theft target.

Insurers weigh all of this data and decide how likely it is that someone driving a specific type of vehicle will generate a claim—and how expensive that claim will be if it happens. If the expected cost is high, the premium will be high.

Additionally, the ISO (Insurance Services Office) assigns ratings to vehicles based on factors like make and model. Insurers use these ratings to fine-tune premiums so that each vehicle’s rate better reflects its actual risk and potential claim costs.

The Riskiest Vehicles: Theft and Crash Trends

Some vehicles are more attractive to thieves, while others are more likely to be involved in crashes. These two lists don’t always match.

Most stolen vehicles tend to be the most common and widely used models. That often includes:

• Ford F-150s and other popular pickups
• Chevy Silverados and GMC Sierras
• Toyota Camrys and similar sedans
• Nissan Altimas and other widely sold models

These vehicles are everywhere, which makes them easy to target and easy to strip for parts with high resale value. That raises comprehensive claim frequency and can push premiums higher, especially in areas with high theft rates.

Vehicles that get into the most accidents are often a different group. These usually include more expensive and luxury models, such as:

• BMW sedans and crossovers (like the 3 Series or 4 Series, and the X1)
• Land Rovers and high-end SUVs
• Premium brands like Audi and Jaguar

These vehicles may be driven more aggressively, and when they’re involved in a claim, the repair bills can be substantial. That combination (higher crash severity + high repair cost) leads to higher average premiums.

Location matters, too. If you live in a city where theft of a certain model is very common, you’ll likely see that reflected in your rate. On the other hand, if you live in an area with very low theft and vandalism, even owning a popular theft target like a newer Nissan Altima may not raise your rate much at all.

Insurance Rates and Actuarial Science

Behind the scenes, actuaries are constantly crunching numbers. Insurance companies use actuarial science to set standards, rates, and financial plans for all types of policies—auto, home, life, and business.

Actuaries analyze past data to predict future claims. They look at how often certain types of accidents, thefts, and losses occur, and how expensive those losses are. They know that some years will be worse than others, but over long periods, patterns emerge and averages stabilize.

Using these patterns, insurers estimate how much they’re likely to pay out in claims for a given type of driver and vehicle. They then set premiums accordingly so they can cover those claims, pay their expenses, and still make a profit.

Modern computing power makes this process incredibly precise. Insurers can now rate nearly every specific year/make/model combination based on:

• Crash frequency and severity
• Theft and vandalism rates
• Repair and parts costs
• Safety ratings and available features
• How that particular vehicle performs in your region

That’s why the type of vehicle you drive can drastically change your quote—even if everything else about you stays the same.

How to Choose a Car With Cheaper Insurance

If you’re shopping for a new or used car, it pays to think about insurance before you sign the paperwork. A few general guidelines:

• Look for strong safety ratings. Vehicles with excellent crash-test scores and advanced safety features often earn lower premiums.
• Avoid high-performance and heavily modified vehicles. Fast cars and heavily customized rides usually cost more to insure.
• Be cautious with luxury brands. High-end models can mean high-end repair bills and higher coverage costs.
• Check theft trends in your area. If a model is frequently stolen where you live, comprehensive coverage may cost more.
• Get insurance quotes before you buy. Ask your agent or run quotes online for a few different models you’re considering to see how much each will cost to insure.

FAQs

Final Word on Your Car Type and Insurance Rates

The next time you’re shopping for a new or used car, remember that the vehicle’s year, make and model will directly affect your insurance rates. If it’s a frequently stolen model or one that’s often involved in serious accidents, your premiums will reflect that added risk.

By understanding how insurers evaluate different types of vehicles and checking insurance costs before you buy, you can choose a car that fits your lifestyle and your budget—on the road and on your insurance bill.