The Impact of Vehicle Safety Ratings on Car Insurance Rates

If you’re in the market for a new or used car, you might want to pay attention to its safety rating. Not only can a safer vehicle protect you and your passengers in case of a crash, but it can also save you money on car insurance.

Vehicle safety ratings are scores that indicate how well a vehicle performs in various crash tests conducted by independent agencies, such as the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS). These tests measure how well a vehicle protects its occupants from injuries and fatalities in different types of collisions, such as frontal, side, rollover, and rear-end crashes.

Vehicle safety ratings can have a significant impact on your car insurance rates and premiums. According to a study by Insure.com, drivers who choose vehicles with higher safety ratings can save an average of $314 per year on car insurance compared to drivers who choose vehicles with lower safety ratings. That’s because car insurance companies use vehicle safety ratings as one of the factors to assess the risk of insuring a vehicle. The safer the vehicle, the lower the risk of claims, and the lower the rates.

In this article, we’ll explain how vehicle safety ratings influence car insurance companies, how consumers can benefit from choosing safer vehicles, and how to find the best car insurance deals based on vehicle safety ratings.

How Vehicle Safety Ratings Influence Car Insurance Companies

Car insurance companies use vehicle safety ratings as one of the factors to determine how much they charge for car insurance. The logic is simple: the safer the vehicle, the less likely it is to be involved in a crash or cause severe injuries or damages. This means lower claims costs for the insurance company and lower rates for the driver.

For example, according to Insure.com, drivers who own a 2023 Honda Civic LX, which has a 5-star overall safety rating from NHTSA and a Top Safety Pick+ award from IIHS, pay an average of $1,638 per year for full coverage car insurance. On the other hand, drivers who own a 2023 Chevrolet Camaro LT1 Coupe, which has a 4-star overall safety rating from NHTSA and no award from IIHS, pay an average of $2,266 per year for full coverage car insurance. That’s a difference of $628 per year for the same driver.

Of course, vehicle safety ratings are not the only factor that car insurance companies consider when setting rates. They also look at other factors, such as:

• The driver’s age, gender, marital status, education level, and occupation
• The driver’s driving history, including accidents, violations, claims, and tickets
• The driver’s credit score and history
• The driver’s location, including state, city, zip code, and neighborhood
• The driver’s annual mileage and usage of the vehicle
• The driver’s coverage options and limits
• The driver’s discounts and loyalty programs

All these factors can affect your car insurance rates positively or negatively depending on your situation. For example, if you have a good driving record, a high credit score, and low annual mileage, you can expect to pay less for car insurance than someone who has a poor driving record, a low credit score, and high annual mileage.

How Consumers Can Benefit from Choosing Safer Vehicles

Choosing a vehicle with a higher safety rating can have many benefits for consumers. Not only can it lower your car insurance rates and premiums, but it can also reduce your likelihood of injuries or fatalities in a crash.

According to NHTSA , in 2023 alone , there were 36 ,096 people killed and 2 .74 million people injured in motor vehicle crashes in the United States . That’s an average of 99 deaths and 7 ,507 injuries per day . Many of these crashes could have been prevented or mitigated by choosing safer vehicles .

So how can you compare vehicle safety ratings and find reliable sources of information? Here are some tips:

• Check out the websites of NHTSA and IIHS , which are two of the most reputable agencies that conduct crash tests and assign safety ratings to vehicles . You can search for vehicles by make , model , year , class , or rating , and see how they perform in different types of tests . You can also see which vehicles have earned awards or recognition from these agencies .
• Look for other websites that provide comprehensive reviews and comparisons of vehicle safety ratings , such as Rightcar , CarBuzz , or Edmunds . These websites can help you find vehicles that suit your needs , preferences , budget , and lifestyle , as well as provide you with useful tips and advice on how to choose a safe vehicle .
• Consider the features and technologies that can improve a vehicle’s safety rating , such as airbags , anti-lock brakes , electronic stability control , lane departure warning , blind spot monitoring , forward collision warning , automatic emergency braking , adaptive cruise control , and rearview cameras . These features and technologies can help you avoid or reduce the impact of crashes by alerting you of potential hazards , assisting you with steering or braking , or taking over control of the vehicle in critical situations .

How to Find the Best Car Insurance Deals Based on Vehicle Safety Ratings

Once you’ve chosen a vehicle with a high safety rating, you can start shopping around for car insurance quotes from different companies and compare rates based on vehicle safety ratings. Here are some steps to follow:

• Use online tools and platforms that allow you to compare car insurance quotes from multiple companies in minutes , such as NerdWallet , Forbes Advisor , or Bankrate . You can enter your personal and vehicle information , select your coverage options and limits , and see how much each company charges for car insurance based on your vehicle’s safety rating and other factors .
• Look for discounts and incentives that can lower your car insurance rates even further , such as good driver discounts , good student discounts , multi-policy discounts , multi-car discounts , low-mileage discounts , anti-theft device discounts , defensive driving course discounts , or loyalty programs . You can ask each company what discounts they offer and how much you can save by applying them to your policy .
• Increase your deductible , which is the amount you have to pay out of pocket before your insurance kicks in . By increasing your deductible , you can lower your premium , which is the amount you pay for your insurance policy . However, make sure you can afford to pay your deductible in case of a claim .
• Review your policy regularly and update it as needed . Your car insurance needs and rates may change over time due to various factors , such as changes in your vehicle’s value , condition , usage , or safety rating . You may also qualify for new discounts or find better deals from other companies . Therefore, it’s a good idea to review your policy at least once a year and shop around for new quotes to see if you can save money on car insurance .

Conclusion

Vehicle safety ratings are an important factor to consider when buying a new or used car. Not only can they protect you and your passengers in case of a crash, but they can also save you money on car insurance.

By choosing a vehicle with a higher safety rating, you can lower the risk of claims for your car insurance company and lower the rates for yourself. You can also reduce your likelihood of injuries or fatalities in a crash and enjoy a safer driving experience.

To find the best car insurance deals based on vehicle safety ratings, you should compare quotes from different companies, look for discounts and incentives, increase your deductible, and review your policy regularly.

If you want to learn more about vehicle safety ratings and how they affect car insurance rates, check out our website for more information and resources. You can also get free car insurance quotes online from multiple companies and see how much you can save by choosing a safer vehicle.