The Most Affordable Cars to Insure
If you are shopping for an affordable vehicle you need to do your research. When you have found the make and model that works for you, you need to consider things like a down payment, overall cost, monthly payment amount, interest rate and reliability. One thing that many people forget to factor in – is the cost of automobile insurance. If you are a smart consumer, before you even decide on a vehicle, you should consider how much it will cost for insurance coverage. The cost of insurance definitely factors in to the affordability of a vehicle.
It is important to keep in mind that insurance rates vary, not only based on your age and driving record, but they can vary significantly depending on the type of vehicle you drive.
How Do Car Models Influence Insurance Rates?
Automobile insurance companies price insurance policies based on the risks that you and your vehicle present. Part of the pricing is calculated on something known as vehicle claim history. The vehicle claim history indicates which cars have the most accidents and highest rates of car theft. A higher risk means higher car insurance rates.
The least expensive cars to insure tend to be the ones with the least amount of claims. Interestingly, cars with less horsepower are generally cheaper to insure than cars like sports cars that are designed for speed, which often result in more accidents.
According to NerdWallet.com, the following ten popular model cars (ranked by cost to insure) are the cheapest to insure:
- Honda CR-V
- Subaru Outback
- Jeep Cherokee
- Chevy Equinox
- Ford Escape
- Jeep Wrangler
- Toyota Highlander
- Toyota Tacoma
- Toyota RAV4
- Nissan Rogue
While you may not be shopping for any of these specific models of cars, there are certain characteristics and types of vehicle that you can avoid, because they tend to have higher insurance rates:
- Expensive sports cars have some of the highest auto insurance rates. Drivers of these cars tend to be younger and more prone to accidents, which drives up the cost to insure the cars.
- Larger vehicles like large SUVs which can cause more damage to other vehicles and their occupants in an accident.
- Luxury cars can be costly to repair which drives up insurance rates.
Cars that are frequently targeted by thieves can also be expensive to insure because the insurance premium factors in stolen vehicles and any damage from fire or vandalism.
Rates can also vary quite a bit among insurance companies, so it is a good idea to shop around and compare quotes. Some insurance companies also offer discounts for features that may reduce the risk of injury or theft. When it comes to insurance rates, you can’t do anything about certain factors such as your age or gender, but the vehicle that you choose is one factor that you can control.