SUVs seem to rule the roadways today. It’s true that more consumers want larger vehicles today than they have in the past. Regardless of the vehicle type, however, it must be insured. If you’re concerned about insurance costs on your next car purchase, take a look at the factors that determine your rates. Insurance costs are starkly different when you compare SUVs to sedans.
A General Comparison
For general purposes, SUVs will normally have higher premiums compared to sedans. SUVs have fancy features that aren’t common on sedans, such as:
- Engines with added horsepower
- Extra paneling to cover the long, vehicle frames
Insurance providers base the premiums on the cost it would take to replace the vehicle after an accident. SUVs simply cost more than the standard sedan. A consumer who wants an extremely low premium will gear their car-purchasing goals to the small vehicles in the marketplace.
Costs Drive Rates
Aside from the basic parts of the average vehicle, insurers also take accessory packages into consideration. In fact, there might be thousands of dollars dedicated to the accessories alone. These items might include:
- GPS components
- Sport-trim packages
- Stereo systems
If the vehicle is involved in an accident, these accessories must be replaced as necessary. As a result, your premiums will be higher on a vehicle with extra accessories compared to a stripped-down sedan or SUV.
The Popularity Factor
Every year, vehicle experts put out a list that describes the top models being stolen off the streets of the nation. Insurance providers take these lists very seriously. If your sedan or SUV is a popular choice among thieves, there’s a higher premium to be paid.
Ideally, select a vehicle in either classification that’s not on the popular list. The insurance will be significantly lower than a more popular car.
Insurance companies understand that vehicles with solid, safety ratings will last longer on the road. They have durable structures so that the passengers are safe within the vehicles. Lower premiums are attached to these models regardless of their classification.
Steer clear of vehicles with poor ratings. Insurers are aware of these cars, which makes your premiums excessively high. Look for cars with many airbags and strong, crash-test ratings for the best deal.
Drivers may not realize that their parking and driving habits also make an impact on the vehicle’s insurance cost. A car used for commuting purposes has more opportunities for accident involvement. High premiums will be attached to these vehicles regardless of their classification.
If you park the vehicle outside, your ZIP code’s crime statistics will also dictate the insurance costs. Areas with a lot of crime will require expensive premiums.
Researching your dream car before signing on the dotted line is the best course of action to take if cheap car insurance is a priority. Look for high-powered engines, expensive accessories, and theft rates when it comes to choosing your model. All of these aspects will factor into your insurance premium every month. With a smart purchase, you’ll have an inexpensive bill for many years to come.