Yes, owning a car can significantly change your insurance premium, usually by increasing it. The primary reason is that you now have a physical asset—the vehicle—that the insurance company must cover against damage, theft, and liability. The specific make, model, and year of the car you own are the biggest factors in determining your new rate, as insurers use complex data to assess its risk profile.
The cost to insure your car is based on the insurer's actuarial risk—the statistical probability of a claim. High-performance cars, luxury vehicles, and models with expensive parts are statistically more costly to repair or replace, leading to higher premiums. Conversely, cars with top-tier safety ratings and advanced driver-assistance systems (ADAS) like automatic emergency braking may qualify for discounts.
Your driving history, location, and coverage choices still matter, but the car itself sets the baseline. Before you buy, it's smart to get insurance quotes for different models you're considering.
| Factor | Impact on Premium (Est. Range) | Rationale |
|---|
| Vehicle Value/Sport Model | Increase 15% - 50%+ | Higher cost of repair/replacement; increased risk of accidents. |
| Safety Rating (5-Star) | Decrease 5% - 15% | Lower statistical probability of severe injury claims. |
| Theft Rates (High) | Increase 10% - 25% | Greater risk of a comprehensive insurance claim. |
| Age of Vehicle (New vs. 5+ yrs) | Varies | New cars cost more to repair, but older cars may lack safety discounts. |
| Engine Size (4-cyl vs. 8-cyl) | Increase 10% - 30% | Correlates with performance and higher risk profiles. |
| Annual Mileage (High vs. Low) | Increase 10% - 20% | More time on the road equals a higher chance of an accident. |
| Credit-Based Insurance Score | Increase/Decrease 10% - 40% | Used in most states to predict claim likelihood. |
| Deductible Choice ($500 vs. $1000) | Decrease 15% - 30% | Higher out-of-pocket cost for you lowers the insurer's risk. |
Ultimately, the car you own is a key variable. A sports coupe will always cost more to insure than a mid-size sedan, all else being equal. The best strategy is to research insurance costs alongside the vehicle's purchase price.
