Written by licensed insurance agent Andy walker
Reviewed by the Alias Insurance editorial team.
Your car’s make and model can raise or lower your insurance rate because insurers study how much similar vehicles cost to repair or replace, how often they are stolen, how often claims occur, and how costly those claims tend to be. The exact trim, model year, engine, safety equipment, and vehicle identification number can matter too. Two drivers with similar records can receive different quotes simply because their cars have different expected insurance losses. The NAIC says insurers often charge more for vehicles that cost more to repair or offer occupants less protection, while HLDI publishes real insurance loss results by make and model.
The effect is often strongest on coverage that pays for damage to your own car, theft, weather losses, fire, and vandalism. Vehicle design can also affect liability losses because some models cause more damage or have different injury claim patterns. HLDI compares hundreds of models across collision, property damage liability, theft and other noncollision losses, personal injury protection, medical payments, and bodily injury. Its results are adjusted for outside factors such as driver age, gender, state, density, and deductible so the vehicle itself can be compared more fairly.
Current industry costs show why the vehicle matters. The NAIC reported in February 2026 that the national combined average premium per issued vehicle was $1,438 in 2023. It also reported that the average incurred loss per collision claim increased from $6,113 in 2021 to $7,191 in 2022. Those figures are national industry measures, not quotes for a specific model, but they show why repair and claim costs receive close attention in insurance pricing.
What parts of your car can affect the insurance price?
|
Vehicle factor |
Why an insurer may care |
Possible effect |
|
Purchase and replacement value |
A total loss can cost more to settle |
Higher value can increase cost |
|
Repair cost |
Parts, labor, cameras, sensors, and materials affect claim payments |
Costly repairs can increase cost |
|
Theft history |
Frequently stolen models can create more theft claims |
Higher theft losses can increase cost |
|
Crash loss history |
Insurers study past claims for similar vehicles |
Worse loss results can increase cost |
|
Safety design |
Occupant protection can affect injury losses |
Better loss results may help |
|
Crash avoidance equipment |
Some systems reduce crash claim frequency |
Can improve some loss results |
|
Performance |
Power and model use can be linked with different claim patterns |
Some performance models cost more |
|
Model year and trim |
Value, power, parts, and safety equipment can differ |
Two versions of one model may price differently |
No row in this table guarantees a rate increase or decrease. Insurers combine vehicle data with driver, location, coverage, mileage, and state rules.
Why does vehicle value affect car insurance rates?
A car worth $60,000 can expose an insurer to a larger physical damage payment than a car worth $15,000. If either vehicle is stolen or declared a total loss under covered circumstances, replacement value becomes part of the insurer’s expected cost. The NAIC advises consumers that vehicles that cost more to repair or replace often carry higher premiums.
Value matters most when your policy includes protection for damage to your own vehicle. A driver who carries only liability coverage does not insure the value of the owned car in the same way. The exact effect still depends on the insurer and policy.
New car buyers should get insurance quotes before signing a purchase contract. A car that fits the monthly loan budget can still produce an insurance cost that changes the total ownership budget. Compare quotes for the exact vehicle, not only the brand.
How do repair costs change the rate?
Repair cost is one of the clearest links between a vehicle and its insurance price. The NAIC includes repair costs among factors that affect auto insurance expenditures and premiums. HLDI also reports that luxury cars tend to have higher overall physical damage losses because of higher claim severity.
Modern repairs can involve more than replacing a bumper or headlamp. Cameras, radar units, sensors, lighting systems, and other parts may sit in areas that are damaged in common crashes. HLDI reported in 2026 that many driver assistance packages reduced claim frequency, yet claims that still occurred often had higher average severity in part because sensors and related components can cost more to replace.
This explains an important insurance tradeoff. A safety system may prevent some crashes while also adding cost to repairs after a crash that still happens. Insurers look at the total loss result rather than judging the car from one feature alone. HLDI found that the Mazda safety bundles it studied generally reduced total property damage liability losses despite higher severity on some claims.
Does theft risk affect insurance rates by model?
Yes. Theft experience can affect the part of a policy that covers a stolen vehicle. The effect can vary sharply by make, model, year, and location. HLDI separates theft losses from other types of noncollision losses because theft patterns can differ widely between vehicles.
The latest NICB national report says 659,880 vehicles were reported stolen in the United States in 2025. That was 23 percent fewer than in 2024. The Hyundai Elantra was the most stolen model in 2025 with 21,732 reported thefts, followed by the Honda Accord with 17,797 and Hyundai Sonata with 17,687.
Raw theft totals do not prove that one model will have the highest insurance rate. Popular vehicles can appear often in theft totals simply because many are on the road. HLDI uses insured vehicle exposure when it studies theft loss frequency, which makes its model comparisons more useful for insurance risk.
HLDI found a striking model difference in its May 2025 study of model year 2022 to 2024 vehicles. The Chevrolet Camaro ZL1 had whole vehicle theft claim frequency at nearly 40 times the passenger vehicle average. One Tesla Model 3 four wheel drive version had whole vehicle theft claim frequency at about 1 percent of the average. These results describe theft claims, not total premiums, but they show why the exact model can matter.
Do safety ratings automatically mean cheaper insurance?
No. A strong safety rating is useful for buyers, but it does not guarantee a lower premium.
NHTSA’s 5 Star Safety Ratings help consumers compare crash protection by manufacturer and vehicle. IIHS also evaluates crashworthiness and crash avoidance. Insurance pricing, however, is based on claim costs and other allowed rating factors, not one safety score alone.
Safety equipment can still matter. HLDI has found lower claim rates for vehicles with certain front crash prevention systems. A 2026 HLDI study of Mazda feature packages found the basic package with front automatic emergency braking was associated with a 13 percent reduction in property damage liability claim rates. The largest package studied was associated with a 39 percent reduction.
A safer vehicle can therefore have fewer claims in some categories while still costing more to repair. Ask for a quote rather than assuming the safety badge alone sets the price.
Why can two trims of the same model cost different amounts to insure?
The trim level can change the car’s value, engine output, wheel size, lights, sensors, interior equipment, and repair parts. A base model and a performance version may share the same model name but present different expected claim costs.
HLDI’s insurance loss data is model specific and can separate vehicle series when their designs or equipment produce meaningful differences. HLDI also warns that older loss experience may not predict a newly redesigned version of the same model.
That is why shoppers should request a quote using the exact year and trim. If the vehicle identification number is available, provide it. A quote for a base version should not be treated as a reliable estimate for a high performance trim.
Drivers considering a performance car can also read whether a Ford Mustang is treated as a sports car for insurance.
Why can luxury and performance cars cost more to insure?
Luxury and performance models can cost more when their value, repair cost, theft experience, or claim history is higher. HLDI reports that some luxury classes have high physical damage losses because claims are costly, while the NAIC notes that sports cars and high performance vehicles can cost more to insure because of accident, theft, and repair experience.
The label alone does not set the premium. A used luxury sedan may cost more than a newer mainstream model if parts, labor, theft losses, or claim severity are higher. HLDI also found that large sports cars had the highest relative whole vehicle theft claim frequency among the classes it studied for model years 2022 to 2024.
Price the exact model and trim before buying it. Drivers considering a performance model can also read whether a Ford Mustang is treated as a sports car for insurance.
Do electric and hybrid cars affect insurance costs differently?
They can. Vehicle value, repair methods, parts, battery related components, sensors, and each model’s real claim history can affect the quote. The NAIC shopping guidance notes that special features and hybrid systems can affect vehicle insurance pricing.
The effect is not the same for every electric or hybrid car. HLDI’s make and model data shows that loss results differ by exact vehicle series, which is why an EV label alone cannot tell you whether a model will be cheap or costly to insure.
For more detail on repair and pricing factors, see why electric cars can cost more to insure.
Does vehicle size affect insurance losses?
Yes, but size can affect different coverages in different ways. HLDI groups vehicles by class and size because crash damage, injuries, theft, and repair costs do not move in the same direction for every type of claim.
For example, larger vehicles may offer better occupant protection in some crashes, yet a larger or heavier vehicle can cause more damage to another vehicle. The NAIC notes that companies may charge more for cars that tend to cause more damage in crashes, including certain SUVs.
Avoid choosing a vehicle based on the idea that either smaller or larger always means cheaper insurance. Ask for comparable quotes.
Does an older car always cost less to insure?
No. An older car often has a lower replacement value, which can reduce the expected physical damage payout. But age alone does not set the quote. A rare model, a theft target, a high performance version, or a car with poor loss history can still cost more than expected.
Coverage choice matters too. Owners of financed or leased vehicles may have contract requirements for physical damage coverage. Owners of paid off older cars may have more freedom to decide whether that protection still fits the car’s value and their budget. State insurance law and lender contracts can differ.
Before removing protection from an older car, compare the annual cost with the car’s current value, deductible, and your ability to replace it after a loss. Lowering a premium is not useful if it leaves you unable to replace a car you depend on.
How much does your car matter compared with your driving record?
There is no single percentage that applies to every driver. The NAIC says auto rates may reflect many factors, including vehicle type, driving record, location, mileage, coverage, claim history, and other factors allowed by state law.
A safe driver can still receive a high quote for an expensive car with costly claims. A driver with tickets or crashes may still pay more even after switching to a cheaper car. Insurers price the combination of driver risk and vehicle risk.
For a broader view, read factors that affect car insurance rates.
How should you compare insurance before buying a car?
Get quotes before you sign the purchase agreement. Compare the same driver, address, limits, deductibles, and policy options across each vehicle you are considering.
Use this process:
- Pick two or three exact vehicles, including model year and trim.
- Get the vehicle identification number when possible.
- Request quotes with identical coverage limits.
- Check the physical damage deductible on every quote.
- Ask whether any safety or theft prevention discounts apply.
- Compare the total six month or annual cost, not only the monthly payment.
- Review lender requirements if you will finance or lease the car.
- Repeat the comparison with more than one insurer.
The NAIC recommends shopping around, providing the same information to each insurer, and comparing coverage as well as price.
Drivers who want to reduce the total policy cost can also review ways to save money on car insurance.
FAQs About Car Make, Model, and Insurance Rates
Yes. Insurers study loss experience for different makes and models. Repair cost, replacement value, theft, crash claims, and injury claims can differ between vehicles. HLDI publishes insurance loss results for hundreds of models.
It can. Two models from the same manufacturer may have different values, engines, repair costs, theft histories, safety equipment, and claim patterns. The exact model and trim give an insurer more useful risk information than the badge alone.
Major insurance rating guidance from the NAIC focuses on factors such as vehicle type, repair or replacement cost, theft, driving record, location, mileage, and coverage. The cited NAIC guidance does not list paint color as a standard rating factor. Ask the insurer if you want to confirm how its filing works in your state.
They can be because a higher vehicle value can raise the cost of a covered total loss, and newer technology can raise repair cost. A newer car can also have crash avoidance systems that reduce some claim frequencies, so the exact model still matters.
Yes, if the replacement vehicle has lower expected insurance losses for your insurer. The result depends on the exact vehicle, driver, location, coverage, and state rules. Get a quote before trading your current car so you can see the change before committing.
Request quotes for the exact model year and trim before buying. You can also review HLDI make and model insurance loss data and NHTSA safety ratings. Neither source gives your personal premium, but both can help you understand the vehicle’s loss and safety record.
Final takeaway
Your car’s make and model affect insurance because each vehicle has its own value, repair cost, theft experience, safety equipment, crash patterns, and insurance loss history. The exact trim and model year can matter as much as the brand name. HLDI data shows that insurance losses can differ sharply even among vehicles that shoppers might place in the same broad category.
Check the insurance price before buying or trading a car. Use the same coverage limits for every quote, compare several insurers, and review state and lender requirements before reducing coverage. Laws and rating rules vary by state, so confirm policy questions with a licensed insurer, agent, or your state insurance department. Alias Insurance can help U.S. drivers compare car insurance quote options so they can judge vehicle cost and coverage together before choosing a policy.
References and Sources
- National Association of Insurance Commissioners: Tips for Saving on Auto Insurance
- National Association of Insurance Commissioners: 2022 and 2023 Auto Insurance Database Report
- Insurance Institute for Highway Safety and Highway Loss Data Institute: Insurance Losses by Make and Model
- Insurance Institute for Highway Safety and Highway Loss Data Institute: Auto Insurance Research
- Highway Loss Data Institute: Whole Vehicle Theft Losses for 2022 to 2024 Models
- National Insurance Crime Bureau: U.S. Vehicle Thefts Experience Historic Decline
- National Highway Traffic Safety Administration: 5 Star Safety Ratings
