Last week, I received an email from my car insurance provider, Progressive, that the address they had on file was out of date. After reading this, I knew that I was about to pay a little extra for the premium I booked months ago. Purposefully, I did not change my address when I moved because I had a feeling that my car insurance rates would go up. Even though I moved a total of 2 miles, sure enough, when I entered my new address, my 6-month premium increased by $84. Seems like a rip off to me that a move of this magnitude could increase my policy almost 20%, but the mad genius that is car insurance rates are not to be questioned.
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 drive also go into the car insurance formula 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. Because the car you drive is a big factor, 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 criteria. That criteria is:
- 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 assuming the conditions of all auto insurance policies are the same (40 year old male, 12 mile commute to work, $500 deductible for collision and comprehensive coverage), on what vehicles would the 6-month auto insurance premiums be the highest? (Based on 2009 data)
- Nissan GT-R – $2,533.00
- Dodge Viper – $2,446.00
- BMW M6 – $2,236.00
- Ford Shelby GT500 – $2,186.00
- Mercedes Benz G Class – $2,088.00
- Audi S8 – $2,071.00
- BMW M5 – $2,020.00
- Hummer H2 – $1,912.00
- Lexus ISF – $1,881.00
- Porsche 911 – $1,809.00
If you flip the equation, the least expensive cars to insure are:
- Hyundai Sante Fe – $832.00
- Kia Sportage – $840.00
- Hyundai Entourage – $848.00
- Kia Sedona – $857.00
- Kia Rio 5 - $870.00
- Honda Odyssey – $871.00
- Smart ForTwo – $881.00
- Saturn Vue – $911.00
- Mazda Tribute – $913.00
- Chrysler Town and Country – $915.00
If you’re looking at some of these costs and wondering why you are paying a lot more than what you see here for the same vehicle, it could be because you live in an accident prone city, have a poor driving record, or possibleybecause your credit score is very low.
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.