When researching car insurance quotes it is important to know which factors insurance companies use to determine their rates. As you might guess, this is not a simple equation. Many factors go into determining car insurance rates. In addition to measuring the monetary value of the vehicle, insurance companies also evaluate the overall safety of a car, any associated repair costs, and the likelihood of theft.

Older cars are generally worth less and this is naturally reflected in lower car insurance costs. It stands to reason that a year 2010 model will be worth considerably more than a year 1980 model of the same car, and therefore cost more to insure. In addition, domestic cars tend to be cheaper to insure than their foreign counterparts. When a car is older it is more likely to break down. It can be difficult and costly to find parts for older cars. Parts for domestic cars are generally easier to obtain. But domestic doesn’t always mean better. Be sure to research the reliability rating for your car. Cars that have a high reliability rating tend to retain their value and are a smarter investment for you and your insurance company. Insurance rates for classic cars can be some of the best values, as owners tend to drive them less and maintain them in top working condition.

Newer model cars may have safety features which reduce the likelihood of damage or injury. Most insurance companies offer reduced rates for cars which feature airbags, anti-lock brakes, and automatic seatbelts. Many cars manufactured in the late 90’s and beyond have these safety features pre-installed. In addition newer cars are more likely to have anti-theft devices in place such as alarms, making them unattractive to thieves. Substantial discounts are also available for non-standard equipment such as the LoJack vehicle recovery system. Many dealerships will offer to install these devices at the time of purchase. Because they more commonly are equipped with anti-theft devices newer year cars are actually less likely to be stolen than popular older models.

The year of your car can have a great affect on insurance rates. Newer cars may be eligible for more discounts than older cars due to their reliability, safety, and anti-theft technologies. However older cars may be subject to lower rates due to their lower inherent value. They may also require less comprehensive coverage than newer models. Whether you decide to drive an older classic car or a newer economical sedan, be sure to research all of the discounts available to you.