Insurance rates vary by car, so depending on the vehicle you own, you could pay a lot more or a lot less. That’s why it might be a good idea to think about the cost of auto insurance before purchasing a specific vehicle. Let’s go over what makes a car more or less expensive to insure so you can factor this into the cost of your next automobile purchase.
Does Car Insurance Depend on the Type of Car?
Yes, car insurance greatly depends on the type of car. Typically, the more expensive the vehicle, the more it costs to insure. This means that your average four-door sedan will probably have some of the lowest insurance rates, while a big pickup truck will be more expensive.
Minivans and SUVs also usually have pretty low insurance rates because they have many features that can keep you safe in an accident. The most expensive insurance rates by car can be found in luxury vehicles. Below, we’ll take a look at auto insurance rates by car type.
Cheapest Insurance Rates by Car
Some of the cheapest cars to insure by make include:
Generally, any car that’s American-made and not a luxury brand will be cheaper to insure.
As of 2021, the least expensive model to insure was the Chrysler Voyager L, which had an annual yearly cost of $1,272 in insurance premiums.
Most Expensive Insurance Rates by Car
Some of the most expensive cars to insure by make include:
These makes of cars are typically more expensive because it costs more to repair them if you’re in an accident. Therefore, insurance companies charge more for your premiums to account for this.
As of 2021, the most expensive model to insure was the Maserati Quattroporte S GranSport, which had an annual yearly cost of $4,823 in insurance premiums.
What Makes a Car More Expensive to Insure?
Many factors influence insurance premiums, but the main thing that makes a car more expensive to insure is the cost to repair it. If a car is a foreign vehicle, it will cost more to repair than an American-made vehicle.
Vehicles that are also most expensive from the start are typically more to insure. That’s because it would cost your insurance company a lot to replace it.
How Can I Lower My Car Insurance Rates?
The good news is that even if you pick a car that’s typically expensive to insure, there are plenty of ways to lower your rates. Try one or more of the following:
- Take a defensive driving course. Insurers will give you a discount if they know you’re a safer driver!
- Don’t get into accidents. Try to avoid any collisions, traffic violations, or fender benders. The safer you appear to your insurance company, the cheaper your rates will be.
- Improve your credit score. In some states, insurers take your credit score into account when calculating your premium. You can improve your score by paying bills on time, getting out of debt, and avoiding opening new credit cards.
- Add anti-theft devices. Most newer cars come with an alarm system, but consider installing a system for an insurance discount if your car doesn’t have one.
- Bundle your policies. Do you also have renters or homeowners insurance? Bundling these with your auto insurance can score you a hefty discount.
- Lower your coverage. Most states require you to have liability insurance, which covers the other driver and their property if you’re at fault. But comprehensive and collision are optional, so removing them can greatly decrease your premium. Learn more about the different types of insurance.
What Is a Fair Price for Car Insurance?
The average cost of auto insurance for Americans in 2018 was just about $1,050 per year. So if you’re paying around that amount, you can assume you have a fair price for your insurance.
But keep in mind, location plays a big role in the cost of your insurance. For example, the highest average annual cost for insurance is $1,545 (in Louisiana), while the lowest cost is $686 (in North Dakota). Keep in mind. These rates are just for liability coverage, so adding on comprehensive and collision could make these costs a lot higher.
Research your area’s average costs to see if your rates are fair or not.
Why Does the City You Live in Matter When Paying for Car Insurance?
Location plays such a big role in calculating insurance rates because some areas are safer than others. Major cities tend to be riskier places to drive than rural areas, as more cars are on the road and lots of traffic jams. That’s why you might pay a lot more for insurance if you live in New York City compared to somewhere like Fargo.
Should Car Insurance Decrease Every Year?
Theoretically, if you are a safe driver who doesn’t get into accidents and sticks with the same insurance company, your rates should decrease every year.
That said, there are ways for your car insurance rates to increase. You might:
- Get into an at-fault accident
- Upgrade to a newer, more expensive car
- Move to a bigger or more dangerous city
- Switch insurance companies and lose your customer discount
How to Find the Best Insurance Rates by Car
Finding the best insurance rates by car type will require you to shop around a bit. To get lower car insurance, you’ll want to compare quotes from at least three different companies.
You’ll also want to see if you qualify for any discounts. As we mentioned above, cars that have safety and security features generally qualify for a premium reduction. Many insurers also offer military, veteran, student, and good driver discounts.