How do safety ratings of vehicles impact insurance premiums?

Higher safety ratings may lead to lower premiums because insurance companies often assess the risk associated with insuring a vehicle based on its safety features and performance in crash tests. Vehicles that are equipped with better safety features—such as advanced airbags, stability control, and strong crash test ratings—are generally considered less risky to insure. This reduced risk translates into lower potential costs for the insurer in terms of claims filed for accidents and injuries. Consequently, drivers who own vehicles with higher safety ratings may enjoy reduced insurance premiums as a reward for having chosen a safer car, which ultimately lowers the likelihood of serious incidents that would result in costly claims.