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How Car Make and Model Affect Insurance Premiums Explained

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Everyone who drives knows that insurance rates can change, but not many people understand how much the badge on the car's hood can affect those rates. The first thing an underwriter looks at when setting a rate is the "DNA" of your car. This includes how easy it is to get parts for and how well it did in crash tests.

In many tariff tables, car models now affect insurance premium dynamics, trumping driver age, according to a 2025 market study. In other words, two owners with duplicate records can still pay very different amounts. Their cars just tell very different stories about how dangerous they are.

Factors Related to Make/Model

Every feature on a car's build sheet comes with a price that insurers measure in rupees and risk scores. Learning about these mathematical and technical factors is the first thing you need to do to guess and maybe even lower the price that goes with any set of wheels.

Repair Costs:

• Prices for workshop staff and extra parts directly affect how bad the claim is.
• Maintenance costs for high-end European brands are about 10-14 cents per mile, while costs for mass-market Japanese hatchbacks are about 6-7 cents.
• Body parts made of aluminium that need special tools
• Sensors are stuffed behind bumpers that need to be reset after small bumps
• Imported OEM parts that take longer to get

Theft Rate:

• A recent crime report for the metro area found that almost half of all stolen cars were from a famous low-cost brand.
• Where the chance of theft goes up, so do rates.

Safety Features:

• Strong crash test results and advanced driver aid systems (ADAS) lower injury payments.
• Cars with five stars on the NCAP rating receive 5–10% lower rates.
• Self-driving emergency brakes
• Monitoring of blind spots with lane change alert
• Cross-traffic alert in the back

Engine CC:

• Responsibility rates are grouped by engine size.
• A small-displacement turbo hatchback frequently undercuts a larger naturally aspirated sedan.
• Accurate IDV calculation is critical to owners of high-end vehicles.

How Insurers Assess Risk

To get a complete picture of the danger, underwriters put together information about the car, the driver, their position, and how they use it. What predictive models ingest are:

• A history of how often each makes and trim claims was made
• How much do parts cost, and how long does the average fix take
• Payouts for loss of use
• NCAP or area test scores for crash safety
• Official records of theft and rates of return

Examples of High vs. Low Premium Cars

That's why insurers put models into risk bands before they look at the driver's past. The car insurance vehicle make premium impact becomes obvious when these five groups are compared.

• High-end sports sedans like the BMW M340i and AMG A35 cost much more.
• Rates are higher for body-on-frame diesel SUVs like the Fortuner.
• Compact EV cars like the Nexon EV and Zoe have battery-related costs.
• Five-star hatchbacks like the 2025 Polo get savings from insurers.
• Entry-level microcars like the Hyundai i10 and Suzuki Celerio offer the lowest insurance cost.

Does Modifying Your Car Affect This?

• Remapping or turbocharger updates increase rates.
• Aftermarket body kits or sunroofs raise costs.
• Poor-quality security upgrades can be a risk.
• Suspension changes increase accident likelihood.
• Rates usually go up by 5% to 25% depending on changes.

Planning to buy a new vehicle? Don’t miss our guide on Does Car Insurance Go Up with a New Car? Here’s Why.

Conclusion

The badge on your car is more than just a way to show off your name; it's also an insurance report. It includes repair costs, theft history, safety ratings, and engine size.

Make and model research needs the same care as fuel economy or loan rates. A smart choice now can lead to years of savings.

FAQs

• What changes when you choose an electric car?
OD premiums rise due to battery costs, but discounts for low emissions are common.

• Are tracking plans less expensive for fast cars?
Yes, real-time driving data helps offer personalised rates.

• What happens to rates when a model is recalled?
Additional charges until the issue is fixed and verified.

• Do different colours impact premium?
No. Colour doesn’t statistically impact claims.

• How are CBU premiums compared to local models?
CBU models are costlier due to import and part costs.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

Related Blogs:

• Everything You've Ever Wanted to Know about Car Model and Car Insurance Premium

• Does Car Insurance Go Up with a New Car? Here’s Why

• Factors that Influence Car Insurance Premium for SUVs and Sedans

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