What Is The Best Car For Insurance? 
How can I minimize the amount I pay for auto insurance ? There are two sides to the insurance premium question . The first side is the dollars going to the insurance company . The other side is the dollars coming from the insurance company when you have a claim . The most expensive insurance policy is one that does not adequately protect you when you have a claim . If you have low liability limits and do several hundred thousand s of dollars in damage you might find your assets and income making up the difference when you have a claim and that could be devastating . When you look at the premium for a recent model car you will discover that the pricing is fairly evenly split between liability coverage and physical damage coverage . In a very general way this means that in an accident you can expect your car to receive as much damage as the other car . Different cars have different repair costs . These costs are determined by taking the results of actual claims and tracking the costs . Some cars have technology that makes them expensive to repair . Others have design features that make them expensive to repair . The safety features on some cars reduce the cost of repair . A client was making a search for a car based upon the total cost of operation . It was very interesting as we compared different makes and models . We were using the same approximate year so the comparison was just on the manufacturer and the different models being considered . The prices varied more than I would have anticipated . It seemed that the more curb appeal the car had , the more likely it was to be a repair shop nightmare . As a car ages its potential repair costs start to come close to its actual cash value . While the price for the physical damage insurance also starts to reduce there might well be a time when you consider the potential loss of your car to be negligible and then you should remove physical damage coverage . I have been startled by people who maintain physical damage on cars approaching 20 years of service . There is a sentimental attachment that is extremely important . Liability premiums also vary somewhat with the horsepower and weight of the vehicle . Sporty , high powered cars can do a lot of damage and statistically are more frequently involved in accidents than low powered plain models . I am often asked about whether or not a specific model is being treated as a sports car . The customer wants to argue the merits of the car . The fact is that the car has been rated on its own claims history and the rate is determined , not by logic , but by experience . It helps to understand the rating system for liability insurance . The year make and model are the starting point as some vehicles are more frequently involved in accidents than others . The second is the driving record and claims history of the principle operator and other drivers in the household . The companies weigh these driving records quite closely . The third factor , in California , is the number of miles the vehicle is used . Obviously every mile has a component of risk exposure so a vehicle being used 40,000 miles a year has a greater exposure to claim than one only being operated 400 miles a year . The next factor is where you live . Rural areas have fewer accidents than urban and some urban areas are worse than others . These factors are considered in determining a rate . Dont forget that the most expensive insurance is the policy that doesnt meet your needs when you have a claim . 