Does the car brand really matter when buying policies?

Does the car brand really matter when buying policies?

You’ll know that insurers will take your car model into account when purchasing an automotive policy. But does the brand actually matter? It entirely depends on how you view it and while data can be quite confusing to understand, it actually does make sense when automotive insurance companies calculate the costs of your premium according to your car brand.

Based on a research report done by the American Customer Satisfaction Index (ACSI), customer satisfaction in buying cars has declined for three consecutive years. This news makes it quite difficult for car companies to take in especially when options to raising the prices for car products and conduct product recalls are what seems to be the best way to earn back their losses. However, the report also has a positive side to it. The report showed that luxury Japanese car manufacturers have a better rate at customer satisfaction.

Still, there are paradoxes found when conducting the research. One of them showed that brands that have been poorly rated still have higher sales due to their attractive prices and brand loyalty towards their customers. The major downside to this is that customers that purchase cars from poorly rated manufacturers may experience repetitive car breakdowns which can potentially cost much more to repair than what was initially spent to buy it.

Taking these factors into place can actually make some sense as to why car brands affect the price of your policy. Low rated car brands can actually take up more cost in servicing them and may have a higher rate of accidents due to their poor quality. Insurers would have to calculate possible servicing costs combined with extensive data to find out how much would it take to keep your car running again before meeting another breakdown. Considering going to companies such as the Liberty Automotive Protection & Warranty for a good quality warranty plan that can keep you and your car reliably covered.