When buying or renewing auto insurance it helps to keep in mind the various factors that determine your premiums. Factors such as your previous driving record, ZIP code, years of driving experience all determine your basic auto insurance premium. Most insurance companies offer extended coverage that goes beyond the minimum required by law, such as collision coverage.
Collision coverage will come in handy in case you are involved in a crash that resulted in damage to your car. The type of car that you drive is a major factor that insurers take into account when determining the premium for collision coverage. Insurers look at frequency of claims and claim severity for various models of cars before determining the premium for collision coverage. They also look at how much it costs them, on average, to fix a particular kind of car, say midsize luxury SUVs such as a Volvo XC90, An Audi Q5, BMW X5 or Lincoln MKT.
In all three markers (claim frequency, claim severity, and loss per claim) luxury SUVs score just above the average of 100. The relative overall loss score of 115 for luxury SUVs is much higher when compared to very large SUVs (score of 82) because very large SUVs tend to come out with lesser damage in case of accidents. This means that midsize luxury SUVs have slightly higher damage susceptibility than average, and this has a direct impact on collision coverage premiums.
As of December 2013, collision insurance for 2010-2012 models of Volvo XC90 costs $415 on average and is the cheapest among midsize luxury SUVs. The same for 2010-2012 models of BMW X5 4WD is $517 and $477 for a Lexus RX350 4WD. Collision insurance for BMW X6M 4WD is the most expensive in the category at $598 on average as of December 2013.