Why Premiums For Vehicles Vary

May 27th, 2021

How Auto Insurance Premiums Are Determined 

Auto insurance premiums are determined by a huge number of variables, but the year, make, and model of a vehicle itself can be a major factor. Insurance companies look at:

  • total replacement cost
  • cost to replace or repair parts
  • performance of the vehicle.

The higher the cost to replace the vehicle, or to find, purchase and install new parts, the higher the rating on the policy. Also, if the vehicle is high performance, statistics show that the increased performance could lead to a worse accident if not handled properly and often require proof of experience driving these cars to add them to your policy. Certain other vehicles can be considered a high risk to insure due to their safety rating.

For example, if a vehicle has been shown to roll easily, it will have an increased rating. Many carriers will restrict what vehicles can be added to an existing policy, and a specialty policy may be needed. 



Safety Features Can Determine Premiums 

Backup sensors, automatic breaking, blind spot warning, and additional cameras are becoming more standard on newer vehicles. These safety features included on your vehicle can be eligible for automatic discounts as they can help prevent an accident or make it less severe, but can also cost more to repair or replace when damaged in an accident adding to the total overall replacement or repair cost.


How Gunn-Mowery Can Help You Determine Your Vehicle Premium 

If you are going car shopping, these are a few items to keep in mind. We are always here to provide you with quotes on vehicles you are considering, and can walk you through the other variables associated with how your vehicle is rated (like who is driving it) to help you make an informed decision.




Jamie Mowery

Marketing Executive

Specialties: Digital Marketing | Content Creation | Social Media | Advertising | Public Relations

Years of Industry Experience: 9

Office Location: Lemoyne

About Jamie: Jamie joined the Gunn-Mowery team as their marketing executive in 2016, after previously working as an event coordinator for the Central Penn Business Journal and the Pennsylvania Credit Union Association. As the Marketing Executive, she is the main point of contact for external communications, community relations and media inquiries. She takes pride in enhancing the Gunn-Mowery brand, including the website, social media platforms, design and marketing campaigns. Jamie is a member of the Leadership Harrisburg Area Community Leadership Series Class of 2019 and is the Chair of the Gunn-Mowery Upside of Giving committee. She attended West Chester University of Pennsylvania where she graduated Magna Cum Laude with a Bachelor’s degree in Communications

When she's not in the office, you can find Jamie spending time with family, friends and her beagle, Lexie. She loves being outdoors, whether it's on her farm, playing golf, relaxing on the beach, or cheering on the Nittany Lions in Happy Valley. 
Call Now Button