Does a good car safety rating lower auto insurance rates?

The answer is yes and no. Car safety ratings are definitely a factor considered by your insurance company that will affect your insurance rates, but it is only one of a combination of several factors they will consider when establishing your insurance costs.

The Insurance Institute of Highway Safety evaluates 2 safety aspects:

    1. Crashworthiness - how well vehicle occupants are protected during a crash
    2. Crash avoidance and mitigation - vehicle features and technology that can either prevent or decrease the severity of the crash such as anti-lock brakes, stability control, airbags, etc.

Premiums are most often based on the potential damage your car may incur, or inflict, during an accident, the risk and degree of occupant injury and the likelihood of theft. Insurance industry rates are mostly driven by data collected in claims reports. There are 4 main indexes insurance companies used when they assess different automobile makes and models.

    1. Collision Damage Indexes (CDI)
    2. Damage and Theft Indexes (DTIs)
    3. Vehicle Safety Discounts (VSDs)
    4. Liability Rating Indexes (LRIs)

The index ratings are ranked from A - E. “A” being the most favorable rating and “E” being the least favorable. Low ratings will result in higher insurance rates.

Are wondering how automobile ranks when it comes to insurance rates?
Do you want to know how much it would cost to insure a car you’d like to purchase?

Call ABC Insurance Service at 713-785-2711, they can answer any questions you have about Houston auto insurance rates.

Posted 10:00 AM

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