By Brenda Williams

Insurance companies have spent millions of dollars in research to determine which types of drivers and cars pose the most financial risks. Based on these results, they have come up with a formula that determines how much a particular driver is charged in premiums. While this formula is only fully known to insurance companies, it's quite obvious that some cars and people are less expensive to insure than others. In this article, we will discuss the particular attributes of car which make it more expensive then another, to insure. Premium amounts are typically based on how expensive the car is, the size of the car, whether or not it is targeted by thieves and whether or not it can do extensive damage to another car.

Cars that have less value (cost), will be cheaper to insure than cars that are more expensive. This is because it will cost the insurance companies less money to replace parts or to replace the entire car if it is totaled or stolen.

The size of the car is also an important part of the insurance cost equation. If a car is too small or too big, then the insurance will be higher. This is because bigger cars can do more damage to other cars in crashes. If the crash it is the driver's fault with the bigger car, then the insurance will likely have to shell out quite a bit of cash. Cars that are too small have the opposite problem. They are often damaged more and the occupants more likely to suffer from crash related injuries. The least expensive cars to insure are those that are mid-sized. Therefore, if long term costs are an issue for you, be sure to purchase a mid-sized automobile.

Whether or not a car is typically targeted by thieves is another component to calculating your insurance rates. If your car is likely to be stolen, then insurance companies assume more risk in insuring you and subsequently, force you to pay more in premiums. Keep this is mind, when you are looking for your next car.

Insurance companies have a pretty elaborate formula when it comes to deciding who will pay what, for their policies. Owners of cars that have to pay the least amount of money for insurance are typically those that have mid sized cars and have vehicles that are not targeted by thieves. If an individual is interested in cutting back on how much they pay for insurance, they will need to consider these things when it is time to make a purchase.

Insurance companies are all about assessing risk. If they view you as a financial risk, they will make sure that you pay more. This may seem unfair, however, insurance companies have done numerous studies and have come up with a profile on what types of drivers and cars get into the most accidents and will likely cost them more money. These individuals will end up paying more then someone that does not exhibit these characteristics. Therefore, try to stay away form high powered cars, cars that are extremely large and that can do major damage to other cars on the road, cars that are too small and that are likely to be damaged greatly if in a crash. Also, remember, the less expensive the car is, the less you will probably have to pay for insurance, unless of course, the car is small.

If you have any questions, be sure to contact your insurance sales person and they will be able to help you get the best priced policy available.