Once you’ve put away your life savings to buy a car, you have to shell out more money to put it. If you’re looking to buy a vehicle but want to choose one to put coverage on, you’re probably trying to decide between an SUV or a sedan. Is the sedan cheaper to insure than the SUV?
Let’s look at what factors go into deciding how much to pay and whether the SUV is more expensive to take out for policy. Plus, we explore tips for choosing a vehicle that won’t cost you an arm and a leg to insure.
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Insurance premium costs are affected by . Your driving record is one of them. Insurance companies will check if you have fines or accidents on your file to see how much risk you might be on the road. This tells them how likely you are to be involved in a complaint in the future. The higher the risk, the higher the premium costs.
Age is an important deciding factor when insuring a vehicle. Younger drivers are seen as a risk on the road due to their likelihood of making bad judgments while driving, such as frequently exceeding the speed limit. They will, more often than not, pay more for auto insurance. Someone in their 40s has more driving experience under their belt and is less likely to get fines or have an accident, so they will pay less.
Another important factor in calculating your insurance premiums is your credit score. While not all companies use it to calculate insurance costs, many do. A poor credit rating tells the insurance agency that you will likely file a claim in the future, so you would be considered a risk, which drives up the price of your insurance. Other factors include gender and where you will be driving the car. What we are discussing here, though, is the type of vehicle you drive.
Are SUVs more expensive to insure than the typical sedan?
Insurance companies will look at the vehicle you want to insure and look for things like:
- How much will it cost to fix
- Vehicle safety ratings
- How many accidents does the type of vehicle cause each year
The safer the car, the lower the insurance premium is likely to be. When you buy the cheapest vehicle to insure, your . They typically have more safety features and are less likely to be involved in risky driving maneuvers, such as speeding. According to , a minivan costs about $1,842 in insurance costs.
The next cheapest vehicle to buy would be an SUV because they are used much like a minivan. These family-type vehicles have many safety features and are less likely to pose a risk while driving. However, a midsize or full-size SUV is more expensive to insure when compared to a crossover, which is smaller in size.
A crossover vehicle costs an average of $1,905 and a larger SUV would cost $2,043. In contrast, a sedan costs $2,212 to insure, which is a few hundred dollars more than an SUV. According to , some cars, like the Toyota Camry, may cost you more in premiums but won’t be as expensive to replace in the event of an accident.
How to choose the cheapest vehicle to insure
With new car prices and insurance costs rising, many drivers are looking for ways to keep their expenses as low as possible. If you’re looking to buy, how do you choose one that won’t cost you a lot of money when you insure it?
One tip is to stick to family-type vehicles, which will have the most safety equipment installed. Sports cars are riskier and won’t have the same kind of safety features that you would get with an SUV. Plus, ultra-luxury vehicles have top-notch value. Insuring it will cost you a pretty penny because these SUVs and cars will cost the insurance agency top dollar to replace them, so your premiums will go up to compensate for that.
Look for a lightly used vehicle. Going with a brand new car will cost you more to insure simply because of its value. A lightly used vehicle will have a depreciation, which will cost you a little less to put the cover on.
Hybrid vehicles are great for fuel economy but not so much for insurance. These cars have expensive equipment, like the electric motor and battery, that will cost you more to replace if you file a claim. Finally, avoid cars that are popular with vehicle thieves. WalletHub lists the top five stolen cars, including the Toyota Camry, Honda Civic and Honda Accord.
When you buy a car, your investment will be more than just the price of the vehicle and any interest your loan adds. It will also add the cost of the insurance premium. How much you pay will depend on your driving record, age, gender and the type of vehicle you purchase. The cheapest cars to insure are usually minivans and SUVs, which are cheaper than insuring a sedan. Ultimately, you can avoid paying too much for your insurance coverage if you follow some of the tips we’ve laid out here.
