Reader’s Question:
Why do specific sport utility vehicles (SUV) models cost more to insure than others? I’m shopping around in Memphis, TN so I get to see how quotes differ from one company to another.
Natasha
Memphis, TN
Insurance premiums depend on different factors, including your age, sex, place of residence, and driving record; the amount and type of coverage you select; and whether you drive your vehicle primarily for business or personal purposes. This somehow explains why one driver might pay a different premium than another for the same make of motor vehicle.
But your question is, why does it cost you more to insure one sport utility vehicle (SUV) than another? In addition to the factors mentioned above, insurance companies consider the possibility that a particular brand of vehicle will be stolen, vandalized, or involved in an accident. Also, they track the estimated cost of repairs. Insurance companies usually get their information by consulting various claim statistics. Because of this fact, an SUV that is most attractive to thieves across the country will probably be more expensive to insure than the one that is stolen least often.
In addition to what the industry wide statistics show, insurance companies consider their own experience with claim payouts. For example, if one company has paid numerous claims regarding a particular make of SUV, it may charge higher insurance premium rates for that type of SUV than another company would. So I would advise for you to obtain quotes from several insurance companies in Memphis, TN before insuring your SUV.