The cost of insurance ranks as one of the two least important factors to new car shoppers, according to a survey released today by the Progressive Group of Insurance Companies.
Fuel efficiency is the second factor of least interest to buyers, according to the survey conducted by the Mayfield, Ohio-based company.
The survey found that overall purchase price, at 46 percent, is the most important factor, followed by make and model, at 31 percent. Safety and performance come in a distant third, tied at 7 percent.
Robin Harbage, Progressive product development manager, said it was remarkable that car shoppers are concerned with the economics of buying a car, but not what it actually costs to use it.
"We want people to realize that insurance can have a big influence on how much they pay to operate their own car over the long haul, and that the type of vehicle they buy makes a difference when it comes to the cost of insurance," Mr. Harbage said.
When determining rates, insurers generally consider factors such as the vehicle's make, model, year, weight, horsepower and body type. "They analyze how often specific types of cars are involved in accidents or are stolen, and how much they've paid out in claims for various makes and models," Mr. Harbage said. "This helps them predict the likelihood of future losses and set accurate rates based on risk."
And even if budget-conscious consumers are willing to buy a car that is generally less expensive to insure, they can still save money on their insurance by shopping around, Mr. Harbage added.
"Because different insurers consider different factors when setting rates, the cost to insure a given vehicle can vary by hundreds of dollars among companies," he said.
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