insu rates 21-11

How Do Vehicle Safety Ratings Affect Insurance Rates?

Your driving record, your age, the type of vehicle you drive, and even your credit rating will determine what you will pay for car insurance. Insurance companies also consider the safety ratings of your car when determining your auto insurance premiums.

Safety ratings have a direct impact on your premiums. The safer a vehicle is the lower the car insurance premium.

How Vehicle Safety Ratings Work

Insurance companies look at the following to calculate your safety rating:

  • How well the car performs in a crash
  • How well can the vehicle avoid accidents
  • How well the car protects its passengers

Some vehicles are great at avoiding crashes by suddenly slamming on the brake. This can reduce the insurer’s risk. Other cars have excellent safety ratings because they perform well and maintain their structure after an accident.

Who Awards Vehicle Safety Ratings?

The two known vehicle safety rating institutions are:

  • NHTSA (National Highway Traffic Safety Administration)
  • IIHS (Insurance Institute for Highway Safety)

These two institutions conduct similar tests to access a vehicle’s safety rating, and the results tend to be similar. For example, the NHTSA rated the safest cars five stars overall and met the highest safety pick criteria by the IIHS.