From Sports Cars to SUVs, What You Drive Impacts What you Pay in Auto Insurance Premiums
If you're in the market for a new car, you've probably already considered things such as styling, comfort, features and fuel economy. But if you haven't considered auto insurance costs, you could be missing a big part of your vehicle's total ownership costs.
When it comes to specific types of cars, there are a variety of factors that determine how much you'll pay for car insurance. Below, we've outlined some of the most significant to assist you with your car buying research. In our article Five Things You Might Not Know About Car Insurance, we also go over other factors that affect your insurance premium in a little more depth.
Sizing up Insurance Costs
When it comes to insuring a vehicle, size definitely matters. While many people think smaller cars offer more maneuverability and thus, a higher likelihood of accident avoidance, this is a misconception.
Statistics prove smaller, sportier cars are driven at higher rates of speed by younger, riskier drivers. Because they're involved in more accidents, they're more expensive to insure.
By that rationale, it stands to reason that larger vehicles such as SUVs would be less expensive to insure. However, a large SUV could drive up the cost of your liability premium -- the premium that covers damage to other vehicles involved in accident -- because of its potential to inflict a greater amount of damage on other cars.
If you're looking to find cheap auto insurance, consider cars in the mid-size category, such as sedans, mid-size SUVs or minivans.
High-End Cars, Higher Premiums
A vehicle's MSRP weighs heavily on the overall cost to insure it. For most insurance companies, the cost of the vehicle is the first and primary consideration when setting the price of the policy. And as a general rule, more expensive cars cost more to insure because of the increased costs associated with repairing them, replacing parts -- especially on foreign brands -- or replacing the vehicle in the event of a total loss.
It's best to consider lower-priced autos if you're looking for additional insurance savings. And for even more ways to cut back, be sure to read our 10 Ways to Save on Auto Insurance article for helpful tips. It covers topics that can make a difference on your premium like increasing your deductible, opting for less coverage on older cars and getting auto insurance quotes from multiple providers.
