The Cheapest Cars to Insure – Does your Car qualify?

Published: March 29, 2018

Updated: May 15, 2018



Insurance companies spend millions of dollars in research to find out the types of cars that pose the most driving risks. In line with their findings, they came up with a formula to determine what a particular driver will be charged as insurance premium. Although this formula varies between different insurance companies, as all of them interpret data differently, it is quite glaring that some vehicles are less expensive to insure than others.

Let us consider in this article the features of a car that makes it more expensive to insure than others. Insurance premium is determined based on the value of a car, the probability of causing severe damage to other property, the likelihood that it will be targeted by thieves, and the past claims that have resulted from each vehicles.

Cars that cost less are typically cheaper to insure than cars which are more expensive. The reason is that the insurance company will pay less to replace the parts or the entire vehicle if it is stolen or totaled, but of course this can vary if a less expensive vehicle is stolen more often or has fewer safety features.

The type of the vehicle is also another important factor which determines insurance premium. High-performance sports cars will often have a higher collision rating, meaning they are more likely to be involved in a crash due to the way they are driven. Luxury vehicles may have a higher comprehensive rating, as the cost of high-tech parts and luxury features and interiors are more expensive to replace in the event of a loss. Smaller, more economical vehicles can also carry a high comprehensive rating as they are more likely to be stolen. The best way to determine premium on different vehicles is to have a skilled broker compare policies from different insurance companies.

Mid-sized vehicles, and certain SUVs can often be the cheapest types of vehicles to insure. This is because they are typically loaded with advanced safety features or have them available as optional equipment. Advanced safety features can reduce your premium, and some insurance companies offer specific discounts for having them.

The probability that your car will be targeted by thieves is another important factor in calculating your insurance premium. If your vehicle is likely to be snatched, insurance companies will consider that vehicle to have a higher comprehensive rating resulting in a higher premium. You should to put this into consideration when buying your next car.

An elaborate formula is used by insurance firms when they want to determine what each client will pay for their policy packages. Car owners who will typically be paying the least amount in terms of insurance premiums, are owners of safe practical vehicles which are not easy targets for thieves. If a client seeks to reduce the amount they pay for insurance, they will have to put these things into consideration, and of course keep a clean driving record!