Reader’s Question:

Is it true that an auto insurance company would charge me higher rates here in Alabama if I have a small hybrid-vehicle?

Saundra F.

Decatur, AL

You may be surprised to find out that auto insurance companies would probably charge you higher rates there in Alabama for driving a small vehicle. But why? You ask. The first thing that people have in mind about smaller vehicles is that they are generally less susceptible to accidents and collisions. Statistics of car accidents over the recent years, however, show a different trend.

There are numerous factors that can cause this kind of trend. First, occupants of smaller vehicles are more likely to get seriously injure or worse, get killed in a car accident or in a collision with larger, stronger built vehicles. Also, drivers tend to take lesser precaution on the road due to the apparent nimbleness of small vehicles, therefore getting involved in more car accidents.

Since auto insurance companies run their business based on risk capitalization, the higher the chances of you getting into a car accident, injuring someone or getting yourself injured (and would therefore make you file auto insurance claims), the higher you are seen as a risk and the more the auto insurance companies would try to compensate for this by charging you higher auto insurance rates.

Now this doesn’t mean that all small vehicles are dangerous. There are also a lot of models nowadays that have excellent safety ratings on their vehicle, which should be the consumer’s focus whenever buying a new vehicle. There are many auto insurance and car safety portals Online that would give you an idea regarding manufacture and model safety ratings & other helpful information.

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