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HOME : Just the FAQs Ma'amAre Some Car Models Less To Insure?I am trying to save money on my car insurance. My broker says that certain models of cars cost less to insure than others, even if they are more expensive to buy. If that is the case, which cars should I consider buying, and which ones should I avoid? The choice is "CLEAR." Your broker is referring to the Canadian Loss Experience Automobile Rating system (known as CLEAR for short), which most insurers now use in calculating automobile insurance rates. Rather than relying on the Manufacturers' Suggested Retail Price, the CLEAR system bases rates on each vehicle model's claims experience, such as cost of repairs, frequency and severity of injury claims, and frequency of theft. After all, it's only fair that the drivers of those makes and models of cars that cost insurers the most should pay more for their insurance. Therefore, if you want to save money on your insurance, you should choose a car that offers safety features, like airbags and antilock brakes, as well as anti-theft devices. Another consideration is how likely the car is to be stolen; some models are like magnets to thieves. Chances are your trusty old sedan is not a likely theft target, but it may lack some safety features that are common in newer models - there are many considerations in choosing a car that costs less to insure. The Vehicle Information Centre of Canada, which performs the CLEAR calculations on behalf of insurers, has produced a brochure called "Choosing Your Vehicle" that compares insurance rankings for cars from model years 1994 through 1998, as well as lists safety features and anti-theft devices for 1998 models. The 1999 version of the brochure will be available in early March. Here's how some of the recent model-year vehicles stack up. Mid-priced cars whose insurance costs are "considerably higher" than average include certain models of the Dodge/Plymouth Neon, Acura Integra, Chevrolet Camaro, Ford Mustang, Honda Civic, Pontiac Firebird, and Volkswagen Golf, to name just a few. The insurance stars include more-conservative models, like the Chevrolet Lumina, Ford Taurus, and Buick Regal. Sport-utility vehicles, on the other hand, rank higher than average. So you're going to pay more to insure that Jimmy or Jeep that you've been hankering for. Remember, the kind of car you drive is only one factor insurers take into account in calculating your premium. The others include your driving record, your location (urban or rural), and how far you drive on a regular basis. You can obtain a copy of "Choosing Your Vehicle," by contacting: Client Services, Insurance Information Centre of Canada, 240 Duncan Mill Rd., Suite 700, Don Mills, ON, M3B 1Z4. Or visit the Web site, at: http://www.vicc.com. The Vehicle Information Centre of Canada is a division of the Insurance Information Centre of Canada. Note: Remember, policies vary, so when in doubt, Contact Us. |
