A number of different factors are used in calculating the premiums for all private passenger vehicles. As a wise consumer who would like to make an informed vehicle purchasing, it is important that you determine how much it will cost to buy the cars at the top of your list. Since you are leaning towards either a Honda CR-V or a Toyota Rav4, two very similar models, you must take the time to learn about safety ratings and claims data and how it affects your own personal insurance rates.
How Safety Ratings Will Impact the Rates for the CR-V and the Rav4
Both Toyota and Honda are known for manufacturing very safe vehicles with all of the latest features. This could be one of the many reasons that you are drawn to these SUV models. Since the insurance rates for a vehicle weigh heavily on how the vehicle performs in crash tests, learning about ratings through the Insurance Institute for Highway Safety is critical. This data is used by insurers to determine how likely the driver and the passenger in the vehicle are to be injured if you do have a wreck and this is the main reason why it affects vehicle classification.
How the CR-V and the Rav4 are Classified
The Honda CR-V has been selected as a IIHS Top Safety Pick and has been given a 4-star safety rating. In crashworthiness tests, the CR-V has performed Good, which is the highest grade given. In addition to crash test ratings, the CR-V has safety features like side airbags, stability control, rollover sensors and anti-lock brakes that can all contribute to qualifying you for an insurance credit.
The Toyota Rav4 is another small SUV that has been given the 4-star safety rating and has been graded with a Good for all crashworthiness tests. In addition to the side airbags, rollover sensor and stability control, the Rav4 comes equipped with driver knee airbags and seat cushion airbags for even more injury prevention. Since the Rav4 has additional safety features, it does receive more discounts than the CR-V.
How Much Damage Does Each Vehicle Cause in an Accident
Insurance companies are not just concerned with how likely you are to be injured in a vehicle, underwriters are also concerned with the average amount of damage a vehicle causes when it is in a loss with a third-party vehicle. Since the company cannot wait until you have a loss to determine how much to charge you, they will use claims data to assess trends. This data can change from year to year and from model to model, but based on the third-party property damage and injuries reported in previous claims, the Rav4 has a more expensive vehicle classification than the CR-V.
Rates For Physical Damage Coverage Based on Average Repair Costs
If you are financing your vehicle or you have intentions of purchasing full coverage to protect your asset, you should find out how carrying full coverage will affect cost as well. The cost for physical damage will depend upon you age, your driving experience, your driving record and where the vehicle is primarily stored. It will also, however, be based on how much it costs to repair a specific model.
While the value of the car might be considered for replacement purposes, the insurer is more concerned with how much they could potentially payout for even a minor fender bender. Since the True Cost of Ownership for a Rav4 is about $2000 more than the TCO for a CR-V, rates will be higher for the Rav4 in the end.