A Cheaper Car Doesn't Always Mean Cheaper Car Insurance Rates
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The amount you pay for car insurance is determined by many factors. One of them is the type of car you drive, with more expensive vehicles often costing more to insure.
However, some cheaper cars have insurance rates on a par with high end vehicles. Read on to learn why this is, and how you can predict the insurance cost before you buy a new car.
The best way to find great coverage for a low price is to compare car insurance quotes online. Use Jerry to review prices and coverage options from up to 50 top insurance companies.
Getting a cheaper car is typically a great way to save money.
Why do some cheap cars cost a lot to insure?
It is assumed that the more expensive your car, the more it will cost to insure. After all, luxury cars cost more to repair or replace following an accident, and they are often targeted by thieves. Insurers understand this potential for costly claims and increase premiums accordingly.
However, as detailed on The Ascent, insurers also look at historical claims data for each make and model. If a specific type of car has been involved in lots of claims, or particularly large claims, insurers will start to treat it as high risk.
The reason cheap cars often fall into this high-risk category is due to a lack of safety features. A cheap car is unlikely to have accident-avoidance technology. They also tend to be small with less sturdy frames.
Consequently, when one of these cheap cars is involved in an accident, the people involved may be more seriously injured than if they had been in an expensive truck or SUV.
Insurance companies consider all of this data during the underwriting process. Drivers with high risk vehicles will be charged more for coverage, even if the car is relatively cheap to buy.
Consider the cost of insurance before you buy a new car
Figuring out the cost of car insurance before you buy a new car might seem a bit backwards, but it’s a really smart strategy. A good place to start is our list of the most expensive cars to insure.
Following that, you can calculate the exact insurance cost of any new car. This is especially helpful if you have narrowed your options down to two vehicles, and want to know which will be cheaper in the long run.
Simply answer a few questions about your driving history and the model you are interested in, and Jerry will show you real insurance quotes tailored for that vehicle. You can also toy around with different deductibles, and see how adding different types of car insurance affects your overall rate.
Repeat the process as many times as you like, for as many different vehicles as you like. Our service is free, and there is no obligation to buy,
Armed with this information, you can make your decision based on which car can offer the lowest insurance premiums. It is also reassuring, because a model with low premiums is probably reliable and safe (at least from an insurance perspective).
The best place to compare car insurance quotes
The best place to compare car insurance quotes, before or after purchasing your vehicle, is right here with Jerry!
A licensed broker, Jerry does all the hard work of finding the cheapest quotes from the top name-brand insurance companies and buying new car insurance. Jerry will even cancel your old policy for you.
And to ensure you always have the lowest rate, Jerry will send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price. This level of service is why Jerry earned a 4.6/5 rating on the App Store and made it one of the top insurance apps in the country.