Deciding on a vehicle, especially if you’re on a budget isn’t just about the make and model. It’s also about the cost of ownership. Unfortunately, you never really stop paying for a car. Insurance companies have changed a bit over the past two decades – with more leniency in case of an accident, assuring your rates won’t go up after an accident and making all that seem as if they’re giving you a gift. You get the gift of not paying more (unless the rates are raised in the next year which they usually are) and you are considered a safe driver.
There’s no leniency on a speeding ticket though. If you go even five miles over the speed limit and it goes on your record, expect to see an increase for two years.
Now, every popular car insurance company has comical commercials to make us laugh and forget about the fact that we are paying this premium for most of our lives without getting anything in return.
Except – when you need it, you need it and then it’s good to have it.
You may be surprised at the No. 1 most expensive vehicle to insure – it’s not a European sports car. The more you have a need for speed (and luxury), the more you’re going to pay for your premiums. Tack on that extra that you’ll most likely have when you drive it five miles (or so) over the speed limit.
Ten least expensive vehicles to insure and average annual premiums
Make Model Average Rate
Honda Odyssey LX $1,298
Jeep Wrangler Sport $1,304
Subaru Outback 2.5i $1,306
Mazda CX-3 Sport $1,307
Honda HR-V LX $1,325
Honda CR-V LX $1,333
Jeep Renegrade Sport $1,338
Ford Escape S $1,344
Subaru Forester 2 5i $1,347
Jeep Compass Sport $1,349
Ten most expensive vehicles to insure and average premiums
Make Model Average Rate
Nissan GT-R $3,941
Mercedes Maybach S650 $3,917
Porsche Panamera $3,887
Mercedes AMG GT R $3,751
BMW M760i xDrive $3,705
BMW M6 Gran Coupe $3,637
Mercedes I8 $3,603
Mercedes S65 AMG $3,585
Mercedes SL63 AMG $3,549
Mercedes S560 4MATIC $3,514
Safety features are a big deal with insurance companies – lane assist, back-up cameras and other safety features stack up when it comes to lowering your premiums. Slower, steady and safe is the name of the game if you want to save.
Convertibles will cost you more as evident from the list above of those Mercedes. So will turbo-charged anything and luxury cars are more expensive to repair.
Technology has made all of our vehicles “safer” but it’s costing us. It’s more complex to fix and update all that technology. Other factors that come into play in determining rates are credit score, driving record, location, gender and claim rates on what car you drive.
If there’s several claims, nationwide, on a car, you’ll pay a higher premium. You gotta love those averages.
Or, you could drive a 1998 pick-up and save yourself a bundle.
Be safe out there.