The cheapest used car to insure depends on many factors, including what features are equipped and how much the vehicle is worth. Considering insurance prices ahead of time can help you budget for a used car purchase while ensuring that you have enough coverage.
What Car Categories are Cheapest to Insure?
Some car categories are cheaper to insure, such as minivans, which are often equipped with good safety features and ratings. Factors like this can earn you insurance discounts. Other types of cars that are often cheaper to insure include small SUVs, pickup trucks, and subcompact vehicles.
Some cars that can drive up insurance rates include sports cars, high-end luxury vehicles, and electric cars. Sports car drivers are, statistically, more likely to speed resulting in more traffic violations. Because of this, insurance companies charge more to insure them.
What is the Cheapest Used Car to Insure?
Some models of cars are cheaper to insure than others from the same brand and body type because of different features. According to NerdWallet, these are some of the cheapest cars to insure and their average annual rates (AARs):
- Subaru Outback: AAR of $1,392
- Jeep Wrangler: AAR of $1,416
- Honda CR-V: AAR of $1,439
- Subaru Forester: AAR of $1,465
- Ford Escape: AAR of $1,476
- Ford F-150: AAR of $1,505
- Chevrolet Equinox: AAR of $1,511
- Jeep Cherokee: AAR of $1,521
- Toyota Tacoma: AAR of $1,527
- Toyota RAV4: AAR of $1,555
Other vehicles that can be cheaper to insure include the Buick Lucerne, the Toyota Camry, and the Volvo V-70. But, specific insurance rates vary depending on the driver and what features are in the vehicle.
How Does Safety Affect Insurance Rates?
According to AutoInsuranceQuote, the Honda Odyssey is one of the cheapest minivans to insure due to its five-star rating with the National Highway Traffic Safety Administration (NHTSA). This makes it a popular choice for a family vehicle.
The Insurance Institute of Highway Safety (IIHS) also gives safety ratings. They have rated the Honda Odyssey with a good rating, as well as the Honda CR-V, the Buick Lucerne, and the Toyota Camry. The Toyota Camry is one of the IIHS top safety picks. Additionally, some vehicles are more prone to theft. Choosing a vehicle with high theft statistics will usually come with higher insurance rates, but anti-theft equipment can reduce those rates.
How to Choose a Used Car With the Cheapest Insurance Rates
Insurance companies calculate insurance rates based on many factors, including the make and model of the car as well as the features installed in the exact car. Look for the following features when choosing a used car for the cheapest rates:
- Safety features: Many insurance companies offer discounts for having certain safety features equipped. This reduces your risk of being in an accident, which can earn you insurance savings.
- Anti-theft features: Having certain anti-theft features installed in your vehicle can reduce the chances of it being stolen, lowering your insurance cost.
- Value of the vehicle: The total value of the vehicle makes a difference when considering insurance rates. Vehicles that have a higher value cost more to repair or replace, which means higher rates.
- Add-on or aftermarket parts: Vehicles with a lot of add-on or aftermarket parts can also be more expensive to repair, which means higher insurance rates.
- Type of vehicle: Sports cars cost more to insure than minivans because of the statistics tied to them. Knowing this can help you pick the best kind of car for you and your insurance budget.
- Repair costs: Some used cars that are older may be more difficult to repair due to hard-to-find replacement parts leading to higher insurance rates.
Different insurance companies factor these things into their rates differently, so it is always a good idea to shop around because you may receive significantly different rates for the same vehicle and coverage from one insurance provider to another.
Other Ways to Save on Your Insurance
Choosing the right car is only one way to save on your insurance rates. Here are a few other ways you might reduce your insurance costs:
- Shop around: Shopping around is one of the best ways to find the cheapest insurance rates. Compare quotes among providers and choose the best coverage for your needs.
- Bundle your policies: If you have insurance on anything else, including your home or a recreational vehicle, bundling your policies with the same provider can earn you a discount.
- Consider usage-based insurance: Usage-based insurance may be a good option for low mileage drivers.
- Evaluate your insurance needs: While you want to ensure you have enough coverage on your vehicle, it is important to regularly evaluate your needs. If you drive a used vehicle, you may not need full coverage. Consider how much it would cost to repair or replace your vehicle and compare that to your monthly rates.
Keep in mind, the make, model, and year of the vehicle is only a portion of the information used to calculate your rate. The insurance company will also consider your age, gender, driving record, and credit score. If you have a lot of traffic violations or a bad credit score, then you can usually expect higher rates. But, choosing a used car that is cheaper to insure can help you offset factors that increase your risk as a driver.
It can also be helpful to calculate how much you will pay for insurance before buying a vehicle. You can easily get quotes from multiple providers using the vehicle’s VIN number. If you’re buying from a dealership, you can usually find the VIN number on their website. If it isn’t listed, you can usually call and ask for it.
Researching insurance ahead of time can also ensure that the vehicle you’re interested in is insurable. If a vehicle has a salvaged title, it can be difficult to find a provider who will offer you coverage.
Do your research ahead of time and find the cheapest car to insure. Vehicles with a lower value and repair cost will usually come with the best rates.
Check this out if you need additional information, resources, or guidance on car insurance.
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