Blog

When It Comes to Insurance, Know Which Cars Will Cost You

If you have a need for speed and buy a small, sporty car that can burn up the road, you’ll likely face higher insurance premiums. Research shows that small cars are more accident-prone because owners of sporty models drive their cars in ways that make them more vulnerable to crashes. The other reason is that younger drivers who love taking risks typically buy them because they are affordably priced.

Every year, the Insurance Institute for Highway Safety examines statistics concerning the insurance losses associated with the most popular vehicles. Since insurance companies use similar yardsticks to set premiums, knowing what a car will cost to insure prior to purchase may save you from making a costly mistake. This year, the Institute rated the Subaru Impreza WRX, the Hyundai Tiburon, the Mitsubishi Lancer, and the Scion tC among the top 5 most expensive cars to insure.

Surprisingly, the car that heads the Institute’s list, the Cadillac Escalade, is a luxury SUV usually driven by a more affluent and older driver. So what makes this vehicle so expensive to insure? Car thieves love it. The car has developed a cult status because of its association with pop culture icons, making it so desirable among thieves, that comprehensive coverage of this vehicle costs six times the national average.

Of course, when you talk about the most expensive cars to insure, you eventually get around to a discussion of the least costly to cover. If you’re looking to cut your insurance bill, look for the current version of what used to be known as “the family car.” Cars in that class are usually large sedans, mid-size SUVs, and minivans. Those who drive these “family cars” have a reputation for cherishing safety. These cars are also rarely found in the commute and, therefore, avoid the risks associated with rush hour. Some of the cars considered the least expensive to insure include the Buick Rendezvous, the Subaru Outback, the Honda Pilot, and the Chrysler Town & Country. The Ford Taurus, a medium-sized sedan, tops this list. Insurers favor Taurus drivers because they prize safety above everything else. Cars like the Taurus are tucked away in garages when not in use, lessening their risk of being stolen. In addition, car thieves typically do not seek out these kinds of cars, increasing their value to insurers.

Before you buy your next car, consider the following tips:

  • Ask your insurance agent if any of the models you are considering have premiums that are substantially different.
  • Find out if any of the models have high repair costs or theft rates.
  • Avoid more expensive cars because they usually come with a higher insurance bill.
  • Shop safety. Look at crash tests results, rollover ratings, recalls, service bulletins, and consumer complaints.