Are you tired of paying a lot for car insurance? Do you want to buy a new car? is your question What Are The Cheapest Cars To Insure? Before you head to the dealership, consider the price of car insurance for different kinds of cars you might buy.
While other factors can influence your insurance rate, the car you drive is important. Not only can it save you money on insurance, but it can also help you save on the purchase price as well as regular maintenance.
5 Things That Determine the Cost of Car Insurance
The cost of auto insurance is based on five key factors:
- Your personal information and rating factors
- Costs of repair or replacement of the car, which affect the rate in the comprehensive and collision sections of the insurance premium
- Frequency of incidents or claims with the car model in question
- Cost of the damage the vehicle can cause to others (property and people)—you can get a sense of this in the car liability insurance and medical coverage section of your insurance premium. These coverage requirements are different in each state.
- The insurance company’s own target client and target vehicle profiles, which also drive discounts that help them attract the type of “risk” they are looking for in any given year. Some insurance companies will surcharge certain type of situations, which make rates go higher. Some will be more lenient. Other insurance companies, depending on the state laws, may even give a special rating for good credit scores. It is a very good idea to research the best car insurance company in your area to find the one who will give you an even better price.
What Are The Cheapest Cars To Insure?
The cheapest car for you to insure will depend on a few factors. However, some cars are cheaper to insure in general.
These cars are cheaper to insure because they don’t tend to have as many claims as the average vehicle. They may also be cheaper to repair and less appealing to thieves.
Here are some of the cheapest cars to insure, in no particular order.
- Subaru Outback
- Honda CR-V
- Jeep Wrangler
- Subaru Forester
- Ford Escape
- Ford F-150
- Toyota RAV4
- Chevrolet Equinox
If you don’t want to get one of those models, they aren’t your only options. Other models aren’t all expensive to insure, and the specific model isn’t the only factor determining insurance cost.
What Type of Cars to Purchase to Save on Insurance
When looking at cars, you may not want to restrict yourself to one or two specific models. Fortunately, certain types of cars can be cheaper to insure.
Whether you buy a Subaru, a Honda, or a Ford, you can save money on car insurance with these vehicle types.
Minivans and crossovers are some of the cheapest cars to insure because they tend to be safe. Most drivers who own them don’t speed a lot, which can lower the risk of filing a claim. SUVs, pickup trucks, and sedans are also lower-risk than something like a sports car.
Cars to Avoid
If you still want a car or type of car that isn’t one of the cheapest to insure, don’t worry. You can probably find your dream car and look for insurance quotes that fit your budget.
However, not all cars come with affordable insurance rates. If a car is expensive to maintain or repair, you will need to pay more to insure it. Here are a few examples of cars that don’t come with affordable insurance rates.
Cars that cost more to buy also tend to cost more to insure. Even if you have the money for a luxury vehicle, consider choosing something more affordable. It doesn’t matter if you choose a sedan or an SUV from a high-end make.
Getting a car that costs more at the start will require more money to maintain. So an insurance company will want to offset that risk by giving you a higher premium.
Now, you don’t have to buy the cheapest car available to get a lower insurance rate. However, consider if you really want or need a Lexus or BMW. Brands like Ford, Toyota, and Honda offer excellent vehicles that can meet your needs with a lower insurance premium.
Similar to luxury vehicles, sports cars are expensive to purchase and insure. However, sports cars also have features that make them easier to drive fast. If you drive your sports car a lot, your chances of getting in an accident go up.
Insurance companies know they may have to pay when that happens. And think about it, many aren’t going to drive slowly when they have a sports car.
If you want a sports car, it can be a good choice, but you have to prepare for the higher insurance premium. Consider if the premium is worth it to you. You may find that you enjoy driving a sedan or another more affordable option.
Electric and Hybrid Cars
Electric and hybrid cars can also come with high insurance premiums because of repair costs. While these vehicles are becoming more popular, they still aren’t as popular as other cars. If you need to replace a hybrid battery, it will cost a lot more than replacing a regular car battery.
These cars also tend to cost more than regular cars of a similar age and size. With the higher purchase price comes more expensive insurance.
If you want an electric or hybrid car, find a used one. Then, you can still take advantage of the electric components, but the lower value may help you save on insurance.
Whether the car is electric or not, newer vehicles cost more to insure because they cost more to buy. A newer model tends to have fewer miles on it, and it can be nice to be the first person to own that particular car.
However, you may need to pay more for insurance until the car value depreciates enough. And while many makers conduct safety tests, you don’t always know the accident rate of a given model until it has time to be on the road.
Even buying a car a year or two after it comes on the market may help you save money overall. Not only can you save money on insurance, but you can save money on buying the car.
Risk of Theft
If people tend to steal a specific car model, that car will be more expensive to insure. Thieves can target any vehicle, but they may focus on more popular models so that they can learn how to effectively steal them.
The vehicles most at risk of theft can depend on where you live. You can ask your local police department for a list of the vehicles that people report stolen the most in your city.
While you don’t have to avoid those cars, you should be aware of them. Then, you can determine if you want that car or if you can get a similar one with a lower risk of theft. That way, you can still have a similar driving experience but with a lower interest rate.
What Else Affects Your Insurance Rate?
If you don’t like driving the cheapest cars to insure, you don’t have to settle for a higher insurance premium. Many factors can affect how much you pay for car insurance and many factors that can cause an increase in your rates.
Before you switch your new vehicle for a used one, consider if it will help significantly. It may help lower your rate, but it may not.
Here are a few other factors to consider when getting an insurance quote.
Your age and gender can have a significant effect on your car insurance rate. Drivers under 25 years old can have much higher interest rates than drivers in their late 20s and 30s. Between 45 and 65, you can expect some of the lowest car insurance rates.
However, your rate can go up after that as older drivers are also at a higher risk. Older adults have a higher risk of developing certain health problems. Because of that, an insurance company may start charging you more for your insurance.
Men also tend to pay more for car insurance than women of the same age and with a similar driving history. Men tend to be less cautious than women, and it can affect your entire policy even if you have one man on it even if the other drivers are all women.
2: Your Location
Your ZIP code can also affect how much you pay for car insurance. Some ZIP codes have more accidents than others, so the risk of an accident is higher. Detroit, Michigan, has one of the most expensive ZIP codes when it comes to car insurance.
On the other hand, Lexington, Virginia, is one of the cheapest places to insure a car.
What’s more, sometimes moving across town can help you lower your premium. If you move to a ZIP code with a lower risk of accidents, you may be able to save money. Whether you live in the city or a small town, consider checking to see how it can affect your insurance.
3: Driving Record
Your driving history may also play a role in your insurance rate. If you’ve ever had an accident, your insurance company probably raised your rate after the fact. It can then take a while for the accident to leave your driving record. If you have a clean driving record, your rates will be lower than if you had any incidents or violations on your record.
While you can take certain drivers’ education courses to get an accident off your record, you may not get the same insurance rate as before your accident.
Be as careful as you can when driving and avoid distractions. You may not always be able to avoid an accident, but you should do what you can to lower your risk.
4: Driving Habits
Along with your history, your current driving habits may affect your insurance rate. Some companies use mobile apps that track when and where you drive. They can also track how far you drive.
Using an app to track your driving can seem odd, but it can help insurance companies calculate your rate. For example, driving a lot at rush hour can increase your risk of an accident.
On the other hand, if you only drive a few miles and during the middle of the day, you may get a lower rate. You can also lower your rate by not speeding when you drive, and avoiding rough braking situations.