Auto Insurance Rates Affected by Studies
Sunday, June 21st, 2009
According to the article “Colmans: Small, Inexpensive Cars May Be Pricier On The Repair End” in the Athens Banner-Herald, The Insurance Institute for Highway Safety (IIHS) released a study comparing repair costs of damage to a handful of small, inexpensive cars. More and more Americans are turning to cheaper cars as they are trying to save money in this tough economy.
The study found that surprisingly mini and micro-car bumpers have expensive damage, and none of the seven vehicles tested rated good according to the IIHS. Just one, the Smart Fortwo, was rated acceptable for bumper performance. 5 out of the 7 earned poor ratings and one earned a marginal rating.
These types of studies directly affect auto insurance rates. Many auto insurers use a service that develops number symbols based on several variables including the cost of damage repair, to help them in determining the price for insuring a certain model and make of a car. So if it is determined that it is expensive to repair your particular car, then it may end up affecting what you are paying on your auto insurance. So while you are saving money on the less expensive make and model, you may end up seeing a rise on your rate. Shop around if this is the case to ensure you are getting the deal deal.
