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Are cheaper vehicles cheaper to insure?

By HUB SmartCoverage Team on June 19th, 2018

If you are a car owner and in the market for auto insurance, chances are you a looking for ways to keep the cost down. There are certainly ways to get the coverage you need while saving some money along the way. One suggestion that some try to give, is to opt for a cheaper vehicle as they are cheaper to insure. But, does that suggestion hold any truth? Let’s take a look.

Does the cost of the vehicle make a difference?

So, the question we have at hand: is your insurance cheaper if you drive a cheaper vehicle? And the answer is, not necessarily. There are more factors at play than just the cost of the car that determine just how much you will have to pay to insure it. While yes expensive flashy sports cars can cost a pretty penny to cover, there are cheap cars that can also lead to high premium costs. Your policy is determined by a number of various factors, and while the car may be inexpensive, there could be other risk factors that cause the cost of coverage to go up.

How is the cost of insurance determined?

If the cost of insurance is not based off of the price of the vehicle, then how is it determined? There are a number of factors that make up the cost of your insurance policy, however they can vary from provider to provider. To find the cheapest auto insurance for your coverage needs, your best option is to shop around. Here are some of the factors that insurers look at when determining your policy:

Driving/insurance history –One of the main factors in determining the cost of your auto insurance, has nothing to do with your car, but you as a driver. Insurers look closely at both your driving and insurance histories when making your policy. If you have any at fault accidents, or a number of speeding tickets, chances you will be paying significantly more for your coverage. Likewise, if you are negligent with your payments or are dishonest with your insurer.

Age/sex – While it may not seem like your age or sex could have a factor on your insurance risk factor, it does. To help establish the cost of your insurance premiums your provider assesses the level of risk that you pose and likelihood that you will be involved in an accident. Based off of years of car accident data gather by Statistic Canada, insurers tend to charge those under the age of 25 more, as they typically have less driving experience. Additionally, young males tend to pose more of a risk than females.

Vehicle’s safety and theft rating –More than their cash value, a vehicle is rated by their safety and theft ratings. To put it simply, the safer your vehicle is, and less likely it is to be stolen, the less you will need to pay to insure it. If your vehicle does not have the highest safety or theft rating, there are features you can install that will help to protect your vehicle and keep down insurance costs.

What are the cheapest cars to insure?

Based on their safety and theft ratings, there are a few cars that stand out as being less to insure than others. This list varies from year to year. Last year’s data is in, and the 2017 cheapest vehicles to insure are as follows:

  • Honda Odyssey
  • Jeep Renegade Sport 2WD
  • Jeep Wrangler Black Bear 4WD
  • Honda CR-V
  • Jeep Compass 2WD
  • Subaru Outback 2.5L AWD
  • Jeep Cherokee Sport 2WD
  • Buick Encore 2WD
  • Jeep Patriot Sport 2WD
  • Subaru Forrester 2.5i AWD
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