Why do some cars cost more to insure?
Asked by: Brain Ruecker | Last update: February 28, 2025Score: 4.3/5 (70 votes)
What car is most expensive to insure?
Which vehicles are cheapest to insure? The Honda CR-V, Mazda CX-5, Jeep Wrangler and Subaru Outback are the cheapest cars to insure. All three have full coverage rates under $250 per month, on average. The price of car insurance generally does go down as a car gets older. This is because older cars are typically worth less than new cars, so the cost to repair or replace them in the event of an accident is lower. Your auto insurance premiums are influenced by the make and car model you drive. Vehicle make and model-specific crash statistics make some vehicles riskier for car insurance companies to cover. If their car needs expensive components or repairs, drivers often pay higher insurance premiums.What car brand is the cheapest to insure?
Why are older cars cheaper to insure?
How does the type of car you drive affect your insurance rates?
Why Car Insurance Rates Are Skyrocketing In The U.S.
What are 3 factors that lower your cost for car insurance?
- Increase your deductible.
- Check for discounts you qualify for.
- Compare auto insurance quotes.
- Maintain a good driving record.
- Participate in a safe driving program.
- Take a defensive driving course.
- Explore payment options.
- Improve your credit score.
Does credit score affect car insurance?
How credit-based insurance scores work. Most U.S. insurance companies use credit-based insurance scores along with your driving history, claims history and many other factors to establish eligibility for payment plans and to help determine insurance rates. Again, except in California, Hawaii, and Massachusetts.
At what point is full coverage not worth it?
Your vehicle holds a low value: As with collision, consider dropping comprehensive coverage if your vehicle's market value is lower than a few thousand dollars. Figure in your deductible as well and the potential insurance payout may not be worth the price of the coverage.
What age is car insurance most expensive?
18-year-old drivers on their own policy pay the highest car insurance premiums out of the age groups Bankrate analyzed. The most significant difference in premiums by gender occurs at age 18. On average, 18-year-old males cost 9 percent less to insure than their female counterparts.
What is the best insurance company for older cars?
- Best for availability: American Collectors.
- Best for restored vehicles: Hagerty.
- Best for regular use: Safeco.
- Best for immediate coverage: Grundy.
- Best for high-value vehicles: Chubb.
Who normally has the cheapest car insurance?
Geico, Nationwide and Travelers are among the least expensive for car insurance. Americans are paying a lot for car insurance these days: Average annual rates for a full coverage policy are up to $2,638 per year, while minimum coverage averages $767 per year.
Why are smaller cars more expensive to insure?
Vehicle size: In general, the larger the car, the higher the premium (think SUVs, multi-passenger cargo vans, etc.). However, smaller vehicles are stolen more often and are more likely to become badly damaged or even totaled in an accident, which can make some small cars more costly to insure than larger ones.
Why are kias so expensive to insure?
While both brands are known for their affordability, reliability, and popularity among consumers, certain factors have made them targets for theft and subsequently increased insurance premiums. Thefts of Kia and Hyundai vehicles has increased by 1000% since 2020 per this article on CNN.
What is the least expensive car to insure?
What cars have the lowest insurance rates? Typically, compact SUVs with high safety ratings and low MSRP have the lowest average insurance rates. Vehicles like the Subaru Outback, Honda CR-V and Toyota RAV4 all fit this model and have some of the lowest average premiums out of all the vehicles Bankrate reviewed.
Why is a newer car more expensive to insure?
Since new vehicles have a higher initial value, they have higher car insurance premiums, but because of the rapid depreciation, these premiums may also decrease over time. Full coverage car insurance costs for new cars tend to be more expensive compared to used cars due to their higher value.
What car brand has the highest insurance?
The most expensive car to insure in 2025 is the Maserati Quattroporte, with an average insurance premium of $6,166 per year, according to Insure.com's data study. The Maserati Quattroporte Trofeo is the most expensive car to insure for young drivers, whereas the Chevrolet TrailBlazer is the cheapest car to insure.
Why is my car insurance so high with a clean record?
The simple answer is that more factors go into the cost of car insurance than just your driving record. Your age, credit score, location, and more can all potentially influence what you end up paying for car insurance coverage, no matter how clean your driving record is.
At what age do car insurance rates drop?
The biggest drop is typically from 18 to 19, when the average rate drops by around $1,595. Car insurance typically drops as you grow older, when you drive safely for three to five years following an accident or citation, and when you switch to a cheaper company.
Which gender pays more for car insurance?
On average, young men pay much more for car insurance than young women. This is because car insurance providers find men to be riskier drivers than women, especially when they are younger. When they are older, women start to pay slightly higher rates.
When should you stop getting full coverage on your car?
- You drive a high-mileage car. ...
- You struggle to fit the cost of auto insurance in your budget. ...
- Your car is worth less than the cost of your full-coverage policy. ...
- You have relatively high risk tolerance. ...
- You rarely drive.
How can I lower my full coverage car insurance?
- Qualify for insurance discounts. ...
- Increase your deductible. ...
- Reduce your coverage. ...
- Compare rates. ...
- Try usage-based insurance. ...
- Take a defensive driving course. ...
- Get a car that's cheaper to insure.
Is it cheaper to insure an older car?
In general, auto insurance for older cars may be cheaper than insuring newer vehicles of the same make and model if the used car is cheaper to repair or replace. A car depreciates in value over time, which lowers the maximum amount an insurance company would have to pay in the event of an accident.
Does State Farm check credit for car insurance?
Most major car insurance companies like GEICO, Progressive and State Farm factor in your credit score when giving you a quote. Some smaller, regional insurers skip credit checks, though their coverage options (and available online information) can be limited.
What is a good credit score?
For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent.
Does paying car payments build credit?
Making regular, on-time payments on a car loan can positively impact credit scores.