What factor does "vehicle type" significantly affect in auto insurance?

The "vehicle type" significantly affects premium costs based on theft and repair risks due to several key considerations. Different vehicles carry varying levels of risk associated with theft and repair expenses. For instance, sports cars or luxury vehicles are often more desirable to thieves and may also have higher repair costs due to the price of parts and specialized services. This leads insurers to categorize vehicles based on their expected loss potential, thus influencing the overall premium costs for policyholders.

In contrast, the other factors like insurance company reputation, vehicle market value, and driver's age may also play roles in determining insurance costs, but they are not as directly influenced by the specific characteristics of the vehicle itself as the risks associated with theft and repair. Vehicle type provides clear metrics for insurers to quantify risk, impacting how premiums are set for different models and makes.