While you would never choose to purchase a car based only on its insurance cost, that particular factor might be more important than others when you are narrowing down your choices. Certain categories of cars are cheaper to insure than others, and certain brands are more reasonable than others within the category. So it makes sense to understand these differences if you’re in the new-car market.
Cheapest Category to Insure
Small SUVs and minivans are the least expensive category of vehicles when it comes to insurance rates. This is because the category offers the best blend of repair costs (which affects the collision part of your premium), lower probability of being stolen (which affects the comprehensive part), driver and passenger safety (which affects the medical coverage part) and damage to other vehicles (which affects the liability part.)
Small SUVs and minivans are also likely to be driven by parents who are transporting children, and thus statistically less likely to speed, crash or file an insurance claim. In this way you benefit from the driving records of other people – when those owners file fewer claims, it carries over to lower the insurance rates of everyone who owns that vehicle.
Within the small SUV and minivan categories, Jeep is the number one manufacturer, with vehicles in 7 of the top 20 positions. These include the Wrangler, the Patriot, the Compass and the Grand Cherokee. Despite the commercials showing Jeeps in dramatic adventure shots, Jeep owners tend to be women under age 45 who are careful drivers.
Other vehicles on the list include the Honda Odyssey and CR-V, the Chrysler Town & Country, and the Subaru Outback.
Not as Cheap as You Might Imagine
Surprisingly, sedans are not as inexpensive to insure as you would expect. There are several reasons for this.
Cars tend to fare poorly in a collision with a non-car. Many vehicles on the road these days are SUVs or light trucks, which all ride higher than a car. In a crash, the higher vehicle will “ride up” on the car and cause immense damage to the car, while perhaps suffering very little damage itself.
Small inexpensive cars, in particular, are not cheap to insure. They tend to be owned by young people (less driving experience, higher chance of accidents) and they do not have as many safety features as more expensive cars (higher probability of driver and passenger injury.)
If you are making the decision for a family vehicle that has been narrowed down to a 4-door sedan or an SUV, you should examine in the annual insurance costs in addition to the other factors you are considering. Consult your insurance agent at a place like May-McConville Insurance Brokers Ltd for an idea of how much you would pay annually each vehicle, and let that help you decide which to buy.Read More