Insurance companies take many things into consideration when providing quotes for premiums to be set for a specific potential customer.
One of the things they look at is the type of automobile you drive. A few cars that fit into this category would be the Hyundai Sante Fe, Ford Taurus, Smart fortwo, Kia Sedona and Chrysler Town & Country. There are a few things that these cars have in common.
One of those contributing factors is the horsepower. The cars mention about have less horsepower than say, a full size pickup, think Dodge RAM or GMC Sierra, or a sports car, much like the Chevy Camaro and Dodge Challenger.
The other major factor is safety. Although most cars these days have airbags all the way around, someone driving a Smart fortwo is not going to take as many risks as someone in a Camaro.
Another key factor is how often the car is stolen. It’s pretty safe to say that the ratio of stolen Kia Sedonas are relatively low.
Insurance companies will also look at your location. Do you live in a crowded city or do you live more in a rural area. They will factor in the probability of an accident by looking at the city in which you live. For example, a city such as Houston with a population of four million people, at the 2000 census, and hazards everywhere such as traffic congestion and construction is going to incur a higher premium, than say, Des Moines, Iowa.