What Type Of Car Should I Purchase To Save On The Cost Of 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 get cheaper car insurance with these vehicle types.
Minivans and crossovers have some of the lowest insurance rates because they tend to be safe. Most drivers who own them dont speed a lot, which can lower the risk of filing a claim. SUVs, pickup trucks, and sedans have lower average auto insurance rates and are also lower-risk than something like a sports car.
Cheapest Cars To Insure For 202:
The 56 Cheapest Vehicles To Insure In 2022
Shopping for a low insurance car? SmartFinancial’s research found that station wagons, minivans and small SUVs are the cheapest cars to insure on average. We also discovered that compact cars, large cars and subcompact cars cost the most to insure on average.
The cheapest cars to insure have good safety features, lower repair costs and fewer historical claims. The most expensive cars to insure had higher repair costs, poor safety records and more car insurance claims.
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Average Car Insurance Rates By Zip Code In 2022
Recently, CarInsurance.com collected automobile insurance premium data from every state and major ZIP code in the country. Armed with these numbers, we can now assess how much you can anticipate paying for vehicle insurance, on average, in most cities across the nation.
Our analysis below reports on which cities/ZIP codes have the costliest car insurance rates, on average, as well as the least expensive automobile insurance rates.
The methodology we followed assumes you are a 40-year-old male with a clean driving record who requires full coverage, drives approximately 12 miles to work, and possesses a good insurance score.
Some of our findings were surprising, while others were somewhat expected. As you might anticipate, living in a more rural ZIP code area can yield cheaper car insurance premiums as opposed to residing in a major metropolitan ZIP code.
Keep reading for more granular detail on which cities charge more versus less for automobile insurance coverage.
- State Minimum: $511
- Full Coverage 100/300/100: $1,682
Are Used Cars Cheaper To Insure
In general, used cars may get cheaper car insurance rates because they’re not worth as much as brand-new vehicles. This means they’re typically cheaper to replace in the event of a total loss. However, it’s still possible that a used vehicle will cost the same or more to insure than a comparable new vehicle. It ultimately depends on how your insurance company weighs the various factors that go into setting insurance rates.
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Average Car Insurance Rates By Age
Auto insurance rates start high when you get your license as a teen driver. They tend to decrease through your 20s when you maintain a good driving record. After you retire, the average cost of car insurance can start to pick up a bit. Rates for older drivers in their 80s get a bit more expensive again.
So why do average car insurance rates by age vary so much? Basically, its all about risk.
According to the Centers for Disease Control and Prevention , people between the ages of 15 and 19 accounted for 6.5 percent of the population in 2017 but represented 8 percent of the total cost of car accident injuries. The risk of an accident is highest among brand-new drivers as well. Sixteen-year-olds are 50 percent more likely to crash than 18-year-olds and 19-year-olds.
When an insured driver gets into an accident, its the auto insurance company that cuts the check. Thats why insurance companies charge more for high-risk drivers, which includes young drivers. You might be the most cautious 16-year-old driver around, but youll still have high rates because of your age.
Below is a chart that compares crash data and yearly average car insurance rates by age. The rate data comes from the AAA Foundation for Traffic Safety, and it accounts for any accident that was reported to the police.
| Age Group |
|---|
| 5% | 4 |
*The Hartford is only available to members of the American Association of Retired Persons . However, policyholders can add younger drivers to their policy and get discounts.
Why Do Car Insurance Rates Change
Looking at average car insurance rates by age and state makes you wonder, what else affects rates? The answer is that auto insurance rates can change for many reasons.
The most common cause of a rate increase is filing a claim. An at-fault accident can raise your rate as much as 50 percent over the next three years. If you were convicted of a DUI or perpetrated a hit-and-run, your rates will go up even more.
However, you dont have to be in an accident to experience rising rates. Overall, car insurance tends to get more expensive as time goes on.
Cars with smart technology and advanced safety features cost more to repair, and an influx of these vehicles can drive up local rates. Also, if your state has a spell of natural disasters, rates will increase to cover the increase in comprehensive auto claims.
Since premiums can be expensive, you might assume that car insurance companies are just getting rich off of what they charge drivers. However, auto insurance losses and expenses actually exceeded written premiums in the industry from 2008 to 2015.
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Cheapest Cars To Insure Among Popular Models
While you might expect a cheaper car to have a lower insurance rate, thats not always the case. Car insurance rates vary, sometimes significantly, depending on the kind of vehicle you drive .
For each of the 25 bestselling vehicles NerdWallet looked at, we found the average insurance rate, the manufacturers suggested retail price and the insurance cost as a percentage of the MSRP.
Heres what it truly costs to insure the most popular cars in the country:
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How Your Car Choice Impacts Insurance Costs
Your age, what state you live in, the number of accidents in your neighborhood, and many other factors beyond your control help determine your insurance rates. But one factor that you control completely is the type of car you choose to drive. Choosing to drive a sports car or a luxury vehicle will generally increase your insurance rates, often by several hundred dollars each year.
Drivers looking to keep their insurance costs low should consider a less flashy vehicle to avoid paying extra on their car insurance each month. A Lexus or a Corvette might be fun to drive, but a Subaru Outback or a Honda Fit could be just as likely to meet your needs and save you a significant amount of money on your insurance premiums.
Choosing a used model can help you reduce your premiums even further, possibly eliminating the need for comprehensive and collision coverage altogether if you choose a vehicle that you can afford to replace out of pocket. This means that drivers who want a brand-new car might be better off purchasing one of the cars from our list of most affordable vehicles to insure. And drivers who want a flashy sports car or luxury vehicle might be able to bring their insurance to an affordable level by purchasing a used model.
Average Annual Premiums by Car Type
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- Luxury Sports Car$2,989
The make and model of your vehicle can impact your insurance premium for a variety of reasons, some of which might be surprising.
Choices That Affect Car Insurance Rates
Some decisions a driver makes can influence the cost of their car insurance. Heres a look at a few of those factors:
- Coverage level: Minimum coverage on your vehicle will cost less than full coverage car insurance. However, youll receive very little protection for your car in the event of an accident if you opt for the state minimum coverage limit.
- Deductible amount: Those with high deductibles receive lower rates for auto insurance, but they also pay more out of pocket when damages occur.
- Bundled policies: You could pay a lower price if you put other types of insurance, such as homeowners or renters coverage, under the same policy as your car coverage.
- Annual mileage: Insurance companies typically charge lower rates for policyholders who dont drive as much since spending less time on the road makes them less likely to get into accidents.
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Cheapest Car To Insure By Segment
Overwhelmingly, we found that Japanese brands appear to be the cheapest to insure 60% of the cars in the top 10 come from a Japanese automaker. Thats because they tend to be more affordable, explains Linda Chavez, founder and CEO of Seniors Life Insurance Finder.
Chavez also points out that vehicle segments play a big factor in insurance rates. Compact SUVs tend to be cheaper to insure than larger SUVs, she explains. In fact, she says that insurance premiums for compact SUVs are generally 10% to 17% less expensive than for larger models.
Heres a quick guide to the cheapest cars to insure by segment.
How Car Models Affect Insurance Rates Down To The Trim
Car insurance companies set pricing based on the risk theyve determined you and your vehicle present. To determine a vehicles risk, insurers consider claim histories, including accidents, repair costs and rates of car theft. More and more costly claims for a particular model mean higher car insurance rates.
Conversely, the cheapest cars to insure tend to have fewer, lower-cost claims.
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Cheapest Cars To Insure For Under 25
Our research also looked at what was the cheapest small car to insure for young drivers. Based on average car insurance premiums for drivers under 25, heres our top 10:
- FIat 500 Lounge
- Volkswagen Polo Match
- Vauxhall Corsa S Ecoflex
The Fiat 500 Lounge, with a premium of £1,619.72, was found to trigger the most affordable premiums for those in the under 25 category.
Older versions of these cracking, fun little cars, whose origins actually date back decades, can be picked up for less than £3,000. This means its one of the best cars to insure for young drivers.
The sporty Ford Ka Zetec took second place in the list. This is one of the most distinctive small cars on the market today and is a low insurance car for new drivers.
The Fiat 500 POP version occupies the number three spot with a £1,713.58 premium, followed by the Fiesta Zetec , for which cover would cost £2,037.99.
Its unsurprising to see a Fiesta make this list. Theyve been one of the best-selling cars in the UK for years and their size and relatively cheap running costs make them ideal vehicles.
What young driver wouldnt fancy getting behind the wheel of the fifth-placed car in the list, the fantastic MINI One? This model has an average premium of £2,063.71.
These cars have been around for a while. So, the good news is you can pick up a 13-year-old example, with around 80,000 miles on the clock, for less than £3,000.
The rest of the top 10 was filled with:
Car Model Factors That Affect Insurance Costs
When youre looking at vehicles traditionally popular with families, youre already looking at a class of vehicles that usually falls into the affordable to insure category. Family drivers tend to be safe operators and drawn to vehicles convenient to the family lifestyle. Those are usually four-door sedans, minivans and sport-utility vehicles. These have plenty of access for child safety seats and storage space for the extras and add-ons that busy families acquire.
Often these are best-selling, popular models too, and this helps with parts, keeping repair costs down when insurance claims are made. When a vehicle develops a reputation for low-cost repairs, insurance companies take note. In Canada, the Insurance Bureau of Canada publishes data showing how all makes and models stack up. The clever consumer uses this information which is also used by insurers to identify models that may prove more affordable to insure.
Car theft is not the problem it once was, as anti-theft devices, both factory, and aftermarket, become more effective. However, its still a factor. Models more attractive to thieves will carry that trait into the insurance market and raise costs for all drivers with these cars. For the lowest insurance costs, avoid vehicles with high theft ratings.
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Does The Vehicle Type Affect Car Insurance Rates
Yes, the vehicle you own has a significant impact on your car insurance rates.
According to the Insurance Information Institute, car insurance companies use several variables to calculate your rates, such as your vehicle’s repair costs, engine size and the likelihood of theft. You may get charged higher rates on your auto liability premiums if you own a car with a poor safety record.
Also, automobiles with safety features may qualify for discounts on car insurance premiums.
Finding The Cheapest Car To Insure When Making A New Car Purchase
The ranking of cheapest cars to insure is based on many factors, including the national average cost of car insurance, which is $1605 annually. The top vehicle on the list of the least-expensive cars to insure carries an insurance rate of $1112 annually.
The cars on the list range from $1112 to $1203 annually, which is still lower than the national average. Regardless of which of these vehicles you may choose, you still have potential savings of hundreds of dollars per year on insurance.
The ranking of the cheapest vehicles to insure by average premium:
- Honda Odyssey LX: $1112
- Jeep Wrangler Black Bear: $1148
- Honda CR-V LX: $1170
- Buick Encore and Jeep Patriot Sport: $1190
- Subaru Forester 2.5i: $1196
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How Does The Car You Drive Affect Your Insurance Rates
Reliability plays a role in the cars with the lowest insurance rates. The data that goes into determining insurance premiums includes records of which model vehicles make the most claims. If someone drives a car with a history of being in more accidents, it will impact their average insurance cost per month, even if their driving record is spotless. It may not be fair to paint one driver with the same brush as someone less careful, but it’s all about insurance companies trying to avoid big payouts.
Typically, these are the most expensive types of vehicles to insure:
Cheapest Cars To Insure For Teenage Drivers
Remember back when you were a teenager? Things were probably a little bit simpler. Cars were cheaper, you could buy them in cash with a part-time job, and maintenance was affordable. Today, however, the story is completely different. In fact, obtaining a vehicle in todays constantly expanding auto market is almost impossible unless you have a near-perfect credit score, are willing to put down massive amounts, or if you choose an affordable car to go on your teen insurance policy.
That being said, though, there are still a number of different affordable car models that you can choose from for your teen. The vehicles discussed below are all brand-new 2022 autos that include the latest safety technology, which will not only give you peace of mind but may also reduce the cost of your teenage drivers insurance!
In this section, were going to be looking at the cheapest cars that parents/guardians can buy for their teenage drivers without having to spend an arm and a leg on insurance!
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Cheapest Car Models To Insure
Car brands have upped their game with the different car designs they have released over the years, and as we reach halfway through 2022, car brands have created lists of their oldest to newest car models that are highly recommended for their performance and price. Below is a graph that shows statistical data on the cheapest car models to insure in 2022.
Subaru Outback is one of the cheapest SUVs to insure at a starting price of $1,392. The Toyota RAV4, one of Toyotas 2022 compact crossover SUVs has set the bar of being the most expensive SUV to insure at a price rate of $1,555.
However, the insurance price rates of these car models vary in different states across the United States, as well as the drivers demography and driving history.