When buying a car, there are many things to consider in your budget. Along with the cost of the vehicle, you should also think about the cost of car insurance and the type of coverage you need. when determining insurance quotes, insurance companies take a lot into consideration. Learn which car is cheapest to insure and other items that affect your insurance rates.
The cheapest cars to insure in 2020
By doing an analysis of how much it costs to insure cars, NerdWallet found that these vehicles are the cheapest to insure on average:
- Subaru Outback
- Jeep wrangler
- Honda CR-V
- Jeep compass
- Ford Escape
- Subaru Forester
- Chevrolet equinox
- GMC Sierra 1500
- Jeep cherokee
- Toyota tacoma
Types of cars with high insurance premiums
Now that you understand which is the cheapest car to insure, it’s also important to know which cars to avoid when looking for the cheapest car to insure. According to Bankrate, sports and luxury cars are the most expensive vehicles to insure. This is because its parts and features are more expensive to replace and repair in the event of an accident.
NerdWallet says that another reason sports cars are expensive to insure is that young drivers tend to be more likely to drive these vehicles. Younger drivers are more problematic, as they have less driving experience, making them more prone to accidents than older drivers. insurance companies offset this risk by increasing their insurance rates for younger drivers.
Bankrate also says that smaller cars are more expensive to insure because they tend to have worse safety ratings than larger vehicles. Electric cars are also on the higher end for insurance, as they tend to cost more. Their repair costs are also higher due to how expensive it is to replace their technology. For example, NerdWallet says that replacing an electric vehicle battery can cost a few thousand dollars.
Finally, one more thing to consider is the likelihood of your car being stolen. Certain models have a higher likelihood of car theft, perhaps due to their security or value features. Do some research to determine which models have a higher risk of theft.
Factors which can affect the price of car insurance
Although your vehicle is an important factor that insurance companies use in determining your insurance rate, they also look for information about you. Here are some things that affect the cost of your insurance rates:
The average amount you drive each year can affect your insurance rates. This is due to the fact that the more you drive, the more likely you are to be in an accident. Also, a large amount of mileage can further wear down your vehicle, which can lead to insurance claims. When applying for insurance, try to be as accurate as possible when telling the insurer how much you drive each year.
Driving experience and age
The Balance says your age and the number of years you’ve been driving is another factor that insurance companies consider. The longer you have without a car accident, the lower your rates are likely to be. That’s because you are showing that you are a safe driver. Taking driver-training courses, such as defensive driving, can also help lower your insurance rates.
Where you live
Another factor The Balance mentions are where you live or work. Insurance companies want to know where you leave your car overnight and during the day. For example, if you live in a rural area with little traffic, your rates are likely to be cheaper than someone who lives in a congested city.
Insurance companies also reward drivers who park their cars in closed garages because they tend to be safer than parking their cars on the street. Where your car resides, insurance companies also consider the crime rate. If you live in an area with high rates of car theft and vandalism, your rates will likely be higher than if you lived in a safer area.
Insurance companies also consider what kinds of natural and weather disasters your location is likely to experience. For example, if you park your car on the street in an area that suffers from a lot of flooding, this could increase your rate. Similarly, if you have a car that drives poorly in snowy and icy conditions, living in a region that receives heavy snowfall can affect your rate. If you were to drive that car in a place without snowfall, your rate may not be as high.
Your credit score is another way insurance companies predict if you are a risky driver. The Balance explains that this is due to data that has shown that people with good credit scores generally have fewer claims. Only some states allow insurance companies to use your credit score to quote insurance rates.
Remember, insurance companies also have different discounts that they offer to drivers. For example, some insurers offer students a lower insurance rate with good grades.
When looking for insurance quotes, remember that many factors that insurance companies use are beyond their control. Shop around and get at least three quotes before signing a contract. You may find that an insurance company has better rates and coverage for your particular situation.