Car insurance is a huge consideration for many Car Pro shoppers when buying a new set of wheels. Things like your age, where you live and driving history make a difference, as do different makes and models and even trim levels. The age of a vehicle matters, too, as well as crash test ratings and even vehicle theft rates. The list goes on.
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Quote Wizard by Lending Tree compiled some interesting data to give you a better idea of how some of these factors can impact the rate you pay for insurance.
Let�s start off by talking about average insurance rates.
Quote Wizard reports that according to the National Association of Insurance Commissioners, car insurance costs an average of $935.80 per year.
NerdWallet�s 2020 assessment of average car costs puts that figure a little higher at $1,427 a year. That boils down to $119 a month for 40-year-old drivers with good credit and clean driving records. (That number goes up to $1,781 after a speeding ticket.) A 50-year-old married couple with two cars is looking at $2,106 in car insurance a year. (By the way, rates can also be determined by your credit. )
Mainstream vs LuxuryIt will come as no surprise that higher-priced luxury cars cost more to insure than more mainstream, lower priced models. Quote Wizard gives this example:
A high-powered luxury car like a Jaguar XJR costs $5,478 per year to insure. On the other hand, a safer and more economical Jeep Wrangler costs $1,306 per year to insure.
Researchers also say �an expensive car model with additional features and a large engine will cost more to insure than a standard car with a high safety rating.� - Source: Quote Wizard
Trim Levels and Body TypesTrim levels can also determine auto insurance rates. Take the 2018 Honda Accord as an example. It has five trim levels, including LX, Sport, EX, EX-L, and Touring. The base model is the cheapest to purchase and insure - while the top of the line the most expensive.
Don�t forget that body types are factors insurers consider- too.
You�ll definitely want to get quotes on how different trims and body styles will impact your rates for the same year, make, and model car.
Other FactorsOther influencing, car-specific factors:
Quote Wizard�s List of Most Expensive Cars to Insure
You�ll notice right away that there are few things the cars on this list have in common. They are luxury vehicles that cost a lot to repair, plus are often targeted by thieves. They are also sporty, with powerful engines under the hood. Insurers tend to relate sporty cars with damaging high-speed crashes, thus raising rates.
According to Quote Wizarddata, the BMW M5 is the most expensive car to insure out of the vehicles it ran quotes for. The 2019 BMW M5 starting MSRP is $102,700, and the insurance price is also high. Quote Wizard says that's because this car goes from zero to 60 mph in just 3.1 seconds and is made of expensive material like carbon fiber, making it risky to drive and pricey to repair.
Quote Wizard�s List of Least Expensive Cars to Insure
Here�s what these vehicles have in common. They are medium-sized vehicles like sedans or small SUVs. Quote Wizard says these vehicles are generally cheapest to insure. Smaller cars don�t get as much love from insurers since they associate them with being faster on the road. They are also �subtle�, not flashy. Showy cars will generally result in higher insurance rates.
Cheapest Car to InsureOk so we know you�re wondering which vehicle Quote Wizard found was cheapest to insure. Based on its quotes, Quote Wizard says it�s the 2018 Jeep Wrangler Sahara, at $1,306.94 per year for insurance. It starts from $28,045, and also has technology for safe driving in all terrain and weather. The combo gives it the honor of having the lowest insurance rate according to Quote Wizard research.
Cheapest Cars to Insure for Teenage DriversWe know many parents have teen drivers headed out on the road on their policies. Quote Wizard compared quotes for a 19-year-old malem full-time student living in Seattle as a full-time student. Guess what vehicle wins again? The car with the cheapest insurance for a young driver is the 2018 Jeep Wrangler Sahara, which is also the cheapest car to insure for our 30-year-old. Quote Wizard says young men tend to have the highest insurance rates, so the premiums were significantly higher for this profile. The annual insurance cost for the 19-year-old totals $3,932.32, which is $2,625.38 more than it costs to insure the same vehicle with 11 more years of driving experience.
Cheapest Sports Cars to InsureSo you know sports cars are the most expensive cars to insure. They are fast and pricier to buy. Here is Quote Wizard�s list of those with the cheapest insurance:
Researchers say the 2018 Audi TT Quattro is the cheapest fast car to insure with the annual insurance cost around $2,481. That�s $1,175 more yearly than the cheapest car to insure, and $3,061 cheaper yearly than the most expensive car on our list. This puts the Audi right in the middle between your average commuter car and a faster, pricier sports car.
For MoreBack to the older versus new vehicle Older vehicles are less valuable than new cars, so they�re generally cheaper to insure. If you�re in an accident in an old car, repairs are cheaper. But depending on how old your car is, it may cost more than its actual cash value to repair your car. If you�re in the market for a new car, it�s important to know how trim level and body style will impact your rates for the same year, make, and model car.
For more on how your credit score can impact your car insurance rate, click here. And for Car Pro tips on how to shop for auto insurance click here.
August 27, 2020