Have you ever moved, whether it be across the country or merely to the next neighborhood, just to learn that your auto insurance rates skyrocketed as a result? What gives? It seems ridiculous that even the smallest of changes can result in a change in auto premiums, but sure enough, it happens.
Fact of the matter is that location is one of many things that determine the cost of your car insurance. Your age, gender, credit history, occupation, driving history, and the automobile that you insure all play a role. Each of these also goes into the car insurance formula used to generate your monthly premium.
If you break down any of these categories even further, you’ll find hundreds of variables that determine different rates. Of course, the car you drive is a one big factor — and one that you can control. So, let’s see if we can figure out which cars are the best for cheap auto insurance rates, and which ones cost the most to ensure.
When a car insurance provider determines how much a brand or make of an automobile should cost to insure, they generally all look at the same things. The criteria includes:
- Theft – How many of the very same car are reported stolen every year? The higher the number, the higher the premium you pay.
- Durability and Safety – Car insurance carriers have hundreds of thousands of clients that insure the very same car or truck that you drive. So every time a claim is reported from someone that drives the same make and model, it provides the insurance company with more data. If the same problems are being reported about the same cars, then it’s going to cost more to insure that vehicle.
- Price – When a car first hits the market, data is at a premium and no claims have been filed, so the insurance companies are in the dark. Basically, the higher the price, the higher the premium.
- Performance – Can your car go from zero to 220 faster than my cholesterol? If so, then you can expect to pay top dollar to insure it.
So, on average, which vehicles would have the highest annual auto insurance premiums? Here’s what I found (numbers are based on 2016 data) for a 40 year-old man with a $500 deductible:
- Dodge Viper SRT – $4,048.00
- Mercedes SL65 AMG – $3,797.00
- Mercedes S600 – $3,539.00
- Mercedes S63 AMG – $3,513.00
- Porsche Panamera – $3,484.00
- Nissan GT-R Nismo – $3,476.00
- BMW M6 – $3,309
- Range Rover SV Autobiography – $3,245.00
- Audi RS7 Quattro – $3,229.00
- Porsche 911 GT3 RS – $3,212.00
Would you guess that the most expensive car to insure (the Viper SRT) is also the most affordable of the ten? It’s true — the Viper starts at “just” under $88,000. So, why does it top the list on insurance premiums?
Since Vipers are more affordable than some of their luxury counterparts, they’re more popular and easier to obtain. Because of this, they have quite the reputation for being involved in accidents with younger, or less experienced, drivers. Hence, the astronomical premiums.
Now, if you flip the equation, the least expensive cars to insure right now are:
- Honda Odyssey – $1,015.00
- Dodge Grand Caravan – $1,028.00
- Toyota Tacoma – $1,033.00
- Honda CR-V – $1,041.00
- Ford Escape – $1,044.00
- Jeep Cherokee – $1,045.00
- Toyota Highlander – $1,061.00
- Chevy Silverado 1500 – $1,078.00
- Toyota Sienna – $1,084.00
- Jeep Wrangler & Dodge Ram 1500 (tied)– $1,086.00
You may be looking at some of these costs and wondering why you are paying a lot more than what you see here for the same vehicle. Well, it could be because you live in an accident-prone city, have a poor driving record, or possibly because your credit score is very low. It could also be something as simple as your age.
Make sure that when you are looking for auto insurance, you compare quotes across many different providers. Depending on the coverage that you need, car insurance can be a fairly inexpensive venture, or a very pricey one so choosing the best carrier that fits your needs is not a decisions to be taken lightly.