Why Auto Insurance Premiums Are Different For Some Cars?

Statista reports that around 75% of the US population had access to their own cars by Q1, 2023. The automotive industry is a pillar of the US economy and cars play a central role in our lives. However, this is an industry in flux too. For instance, the electric vehicle segment is slowly revving up.  Over 918,500 plug-in electric vehicles were sold in 2022, marking a 50% increase in yearly sales. We are seeing more autonomous vehicles and self-driving commercial vehicles also on the streets these days.

Which brings us to the important question of auto insurance and how it is changing in the contemporary world.

Every state in the United States requires auto insurance. However, there has recently been a lot of debate about why insurance premiums vary so much for different cars. Why are some models more expensive to insure?

This could be due to several reasons, including safety, mechanics, technology, and more.

Why are some cars expensive to insure?

There is news that some models of Kia and Hyundai cars are more expensive to insure as compared to other brands. But why is that?

The stats suggest that these cars are easier to steal. This means that insurance companies see these cars as liabilities. According to Vice, states like Chicago and Atlanta have approximately 86 cars stolen per day and over 1,000 cars stolen per month, respectively. The trend began when a trick for stealing these cars was leaked on TikTok, and thefts increased dramatically after 2021. The brands noticed the issue and numerous security enhancements were implemented, but the thefts continued. In many cases, the cars were picked up more than once. According to a news report, a woman reported that her Kia was stolen three times despite having upgraded the security features. Owners of these models are facing real challenges right now.

Some reports suggest that these cars lack enhanced anti-theft technologies, making them easier to steal. The same Vice report mentioned above stated that the manufacturers failed to include a $100 anti-theft device, resulting in more thefts. The companies then began selling this technology to existing car owners via their dealer network for $170. However, despite these upgrades, the number of thefts has not decreased.

This is why many insurance agents have refused to insure these vehicles, putting consumers at a crossroads. In a recent interview on MPR News, Michael Brooks, the executive director of the Center for Auto Safety, explained why these cars are still the hot pick for thieves even in 2024 and after many upgrades. According to him, the cars by Kia and Hyundai are missing an item called an immobilizer, which is essential to stop anyone from starting the car without the real key. The Minneapolis city council passed a resolution to recall all Hyundai and Kia cars that lack these immobilizers.

How do you protect yourself from this?

As a car owner, it is important to understand that firstly, getting car insurance is mandatory, and secondly, when it is so easy to steal this model of car, insurance companies will often charge higher premiums.

Premiums are determined by a variety of factors, including how frequently you drive, your profession, whether you have a security system and a garage, and the state and neighborhood to which you belong. However, the biggest influencer of premium costs is the risk associated with the vehicle. If the theft numbers are high, car insurance premiums will rise. This is very similar to premium costs being high for car owners who live in neighborhoods with higher rates of crime.

Here are some factors to consider while looking to get your vehicle insured.

– Check security/ safety ratings

If you are purchasing or have previously purchased Kia or Hyundai cars that are said to lack the necessary safety features, it is best to have them installed first. When purchasing this vehicle, make sure to choose a model that has all of the necessary security and safety features. Get it checked by an automotive expert to avoid paying high insurance premiums later.

– Have proof of anti-theft security

It is then critical to have proof that your vehicle is secure and cannot be stolen so easily. This can be accomplished by demonstrating the anti-theft security systems installed in your vehicle. It will be excellent proof that your car is not a liability, and an insurance company will be eager to provide you with an insurance policy.

Are you struggling with the same issues with your vehicle? We at Gonzalez Insurance are always trying to solve these modern-day problems with unique solutions. If you wish to know more about insurance premiums and how to insure your car, then get in touch with us.