Providing you discover all of your options, shop around, raise deductibles and check the bonuses and discounts you are entitled to, there is a strong chance that you will be better off financially.
When it comes to seeing real savings, however, that will likely depend on your choice of vehicle. Some cars might be cheaper to insure than others, for a number of reasons. Unless money is no object, it is always an idea to do some research into potential costs to insure a vehicle prior to committing to thepurchase.
Insurance companies take a number of factors into consideration when calculating your premiums, as the price they quote you is effectively a representation of the risk you are to them. However, a major part of their calculation of your premiums also applies to the vehicle you are looking to insure. If a company perceives a car to be a higher risk, then this will be reflected in the price you pay.
In 2017, all but one of the top 10 vehicles in the United States which were cheapest to insure were SUVs. The Honda Odyssey was the most cost-effective to insure, with an industry average of $1,112 per annum. On the other side of the coin, the most expensive models to insure in 2017 were, rather unsurprisingly, flashy sports cars with the Mercedes-Benz S65 AMG Cabriolet ahead of the rest at an average annual premium of $3,835.
What an insurance company takes into consideration when calculating rates to insure a particular vehicle are fundamentally the same across the board. The original cost of the car, repair costs, its history of claims and the safety rating associated with the vehicle will all play a part in determining the cost of insuring it. Cars which are assigned high rates in crash tests conducted by Insurance Institute for Highway Safety and the National Highway Traffic Safety Administration (IIHS) are also naturally perceived as lower risk and cost less to insure.
When assessing the areas where your car may be liable to higher than average costs when insuring it, consider the following factors:
- How likely would it be to appeal to thieves?
- How safe is it for occupants?
- How much does it cost?
- How much would potential repair costs be?
In general terms, these factors will play a big part in how your premiums are calculated against the vehicle you are trying to ensure. There are insurance companies which cater specifically to higher-spec cars, so it is always a good idea to look into what they can offer if you are looking towards this type of vehicle.
While money may be of no object to some, the one thing almost everyone holds in common is that paying less for something will always appeal. The type of car you do choose will certainly contribute to how much it will hit your pockets. SUVs were the top choice of drivers with children in 2017, as they are generally safer vehicles. In 2018, the list of the cheapest cars to insure will likely repeat the findings of those last year.