Different Types of Car Insurance to Buy

Insurance companies use actuarial statistics tables to show their past losses on specific types and styles of cars. These tables are used by insurance companies to calculate future premiums.

These commercial vehicle insurance provider companies have statistical tables that show that owners of sports cars are more likely to engage in risky driving habits than those who own cars of a similar style and type.

According to insurance company statistics, sports cars have been associated with more losses than average cars. Insurance companies also suffer more from such high speeds and increased risk. Insurance companies must increase their return to cover increased risk and loss.

Hummer and other off-road vehicles are other examples of how vehicle type and design can present insurance companies with greater risk. These vehicles were designed for off-road use. These vehicles are higher than normal automobiles to provide undercarriage clearance. They also have four-wheel drive capabilities.

These types of cars have such great design capabilities that statistical tables show that insurance companies have suffered more losses than regular cars. Because these vehicles are riskier for both the driver and the vehicle, their owners will often engage in off-road driving.

Some insurance companies will even deny the right to recover for damages caused by the vehicle's owner while it was being driven off-road. The insurance company will raise auto insurance premiums if there is more risk.  You now know which types and styles of vehicles are more expensive to insure, so you need to make smart choices about the type of vehicle that you buy.