What role does the cost of repairs for my vehicle play in determining insurance rates?

The cost of repairs for your vehicle can affect your insurance rates because insurance companies consider the likelihood of needing to pay for repairs when setting rates. If your car is expensive to repair, the insurance company may have to pay more if you get into an accident. This could lead to higher premiums to cover the potential cost. On the other hand, if your car is cheap to repair, insurance rates may be lower because the cost of potential repairs is lower.

Posted by Alyssa DiCrasto

Alyssa uses her many years of experience writing about complex industries to research and create clear content that makes insurance easy to understand. She has been with Rate Retriever since its beginning, establishing our strict editorial policy and directing our comparison experience.

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