What Is The Cheapest Type Of Car To Insure
As our list clearly points out, the type of vehicle you choose will impact your insurance rates. Insurers consider a wide variety of risk factors and certain vehicle types have more risk than others. When we ran the numbers, looking for cheap cars to insure, vans came out on top followed by trucks.
Here is a quick overview of the cheapest types of vehicles to insure:
- Vans: Vans are by far the cheapest vehicle type to insure with an average premium of $1,443. This is because cargo vans tend to be pretty bare bones when it comes to tech and interior features. They are cheap to repair and dont usually come with a massive sticker price.
- Trucks: Pickups are the second cheapest category to insure with an average premium of $1,684. Pickups tend to be cheap to insure because the entire back end of the vehicle is simply a bed, which means there are no expensive interior trims and tech to repair or replace after an accident.
Who Has The Cheap Auto Insurance
We at Way.com have managed to narrow down to two companies that can provide you cheap car insurance online. They are Auto-Owners and USAA. Auto-Owners have set the car insurance premium at $382 annually, while USAA has set the car insurance premium at $384 annually. We have given these two options because USAA is only available to active military members and veterans, including their immediate family members.
Rates By Credit Score
In many states, insurance companies are allowed to use credit scores when determining insurance rates. Although credit scores have nothing to do with your driving record, a 2007 study by the Federal Trade Commission found that individuals with lower credit scores file more car insurance claims and higher cost claims, on average. This is why insurers typically charge higher rates for drivers with poor credit scores.
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Are There Risks To Getting Cheap Car Insurance
Cheap rates should not mean you have to settle for limited policy coverage options, high deductibles, poor customer service, and a lack of important safety features like emergency roadside service. Things are different with GEICO, where cheap car insurance doesn’t change the exceptional service, features, and coverage options that our auto insurance policyholders receive.
Affordable Car Insurance Really Is That Simple
With GEICO, you don’t have to compromise quality for a low-cost car insurance policy. We work hard to make sure “cheap” only describes your car insurance rates and not the quality of service or your experience as a policyholder. Find out why drivers are switching to GEICO and get a free auto insurance quote today.
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Usaa: Best For Military Families
USAA is an association, much like a credit union, but only active duty and retired military members and their families can join.
Along with its already-low rates, USAA members can save through a variety of discounts. USAA tailors some of its discounts to military life. For example, these car insurance policies charge less when the policyholder is deployed.
Members can tap multi-car, good grades, and driving course discounts. USAA has an accident forgiveness program, too.
Does My Cars Body Type Affect Insurance
Yes, the specific trim and body type can also raise or lower your rates.
Convertibles, sports cars and SUVs tend to be more expensive to insure. Soft top convertibles are easier to break into. Its too tempting not to drive fast in a sports car, and this gives them a higher risk of being involved in a crash.
If you opt for an upgraded trim or a few extra features, changes are that raised your cars MSRP. Springing for heated seats or a fancy sound system wouldnt typically be enough to change insurance rates significantly, but insuring a car with several thousand dollars in upgrades might raise your rates enough to matter.
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Cheapest Basic Car Insurance Policies In Texas
Basic car insurance policies contain only liability insurance coverage and tend just to meet the Texas-mandated minimum coverage limits. It is the simplest policy drivers can purchase in order to be considered legal drivers in Texas.
For these reasons, finding an affordable basic Texas car insurance policy is not too difficult. The cheapest basic Texas car insurance policy ranges, on average, from $400-$500 per year. Depending on your personal factors, you may be paying below or above this average annual rate.
Some policies analyzed from Texas providers may cost drivers, in the $900 range annually, on average. However, this is still a fairly cheap price to pay for car insurance coverage, but you should remember what you are paying for.
Basic car insurance coverage is strictly comprised of liability coverage which means it offers you no protection. The state-mandatory coverage limits are incredibly low and anything not covered falls on the driver to pay out of pocket.
Compare Car Insurance Rates For Drivers With Poor Credit
Your credit history is one of the largest factors affecting your car insurance quote in all states except California, Hawaii, Massachusetts and Michigan. Carriers use credit history to determine how likely you are to file a claim.
While rates can double in some cases, its important to note that every company considers credit very differently, and even among insurers this factor fluctuates by state. Drivers with poor credit insured by Nationwide could pay an average of 33% more $439 more a year in our analysis compared to similar drivers with good credit. Meanwhile, State Farms average price for full coverage more than doubles for drivers with poor credit compared to those with good credit.
Below you can compare average full coverage rates for 35-year-old drivers with poor credit by company.
*USAA is only available to military, veterans and their families.
Certain states prohibit the use of credit in setting rates, and how insurers treat credit differs from state to state. For example, state regulators in one state may allow more wiggle room for credit-based pricing than others, leading to variations by state.
Our analysis found that:
Below you can compare average full coverage rates for 35-year-old drivers with poor credit by state.
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Cheapest To Insure Cars: Conclusion
In this article we went over the cheapest cars to insure and some of the factors that go into determining your auto insurance rates. We also provided a list of discounts that can make insurance premiums even cheaper and went over whether you should pick the cheapest option. Our team recommends that you compare quotes from multiple car insurance providers in order to get the best deal.
Do I Need To Buy The Insurance Plan That Car Rental Companies Try And Sell Me
It depends. If youre looking for just a bit of peace of mind It could be worth it. Each policy is unique and you should consult your insurance agent first. Its possible that you are already covered. Some policies cover you for renting a vehicle while on holiday. However, they might not be covered if your car is being rented out to work, or because it is stored. Be sure to verify your policy.
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The Cheapest Cars To Insure In 2022
The Honda HR-V, Mazda CX-5 and Volkswagen Tiguan are the cheapest cars to insure, offering annual savings of more than $1,000 per year compared to the most expensive models.
Find Cheap Auto Insurance Quotes in Your Area
Minivans and small SUVs are, on average, the least expensive cars to insure when compared to other vehicles. Furthermore, large sedans have the most expensive car insurance across the industry.
Auto insurance costs are higher for certain vehicles for various reasons a car with high repair costs, a poor safety record or few anti-theft features will likely cost more to cover.
Cheapest Car Insurance For Good Drivers In Texas
To be considered a good driver by insurance providers, your driving record must be free of any infractions like a speeding ticket, car accident, or DWI citation.
Drivers in Texas who keep a clean driving record save around 9% on their car insurance premiums. You can even qualify for good drivers discounts to save more.
Good drivers see some of the cheapest car insurance policy rates in the state of Texas. On average, the cheapest car insurance policy for good drivers in Texas ranges anywhere from $500-$1,000 per year, depending on the circumstances.
Coverage limits and policy add-ons will play major roles in establishing a drivers car insurance rates, so do not be surprised if your auto coverage rates are significantly more expensive than the average for good drivers in Texas.
Itâs always best to shop around to find a policy that fits not only your coverage needs but also your budget.
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How Can I Get Cheap Car Insurance When Moving States
This is something that a lot of people tend to overlook. The state you live in has a significant impact on the kind of rates you shell out for insurance coverage. If you find yourself moving between states, ensuring you compare car insurance rates online makes for efficient financial planning. What’s more, you’ll likely find better deals even within your state, so don’t miss out on comparing insurance rates online.
Do I Need To Buy The Insurance Car Rental Companies Try To Sell Me
It depends. It may be worth the cost if you need more peace of mind. Each policy is unique So, make sure you speak with your agent. Its possible that youre already protected. Keep in mind some policies cover renting a car for a trip, but not if you rent for a work trip or because your car is in the shop. Check your policy.
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What Types Of Car Insurance Coverage Are Available
To find the best cheap car insurance options it helps to understand how auto coverage works. A car insurance policy includes six basic types of coverage:
- Liability Coverage: If you cause a wreck, this part of your auto policy pays to repair the damage you caused both property damage and bodily injury to someone else.
- Comprehensive Coverage: This protects your auto investment from theft or damage from hail, animals, or vandalism.
- Collision Coverage: This coverage kicks in to protect your own car in an accident.
- Uninsured Motorist/Underinsured Motorist Coverage: If the driver who causes a wreck has no liability coverage or does not have enough liability, this part of your policy could help cover your losses.
- Personal Injury Protection : This element of your coverage could pay medical expenses for you and your passengers regardless of who was at fault.
Of these six types of coverage, the most important are liability, comprehensive, and collision. These cover most of the situations you could get in as a motorist and auto owner.
Should I Drop Collision And Comprehensive Coverage To Get Cheap Car Insurance
At some point, as your vehicle gets older, paying for collision and comprehensive coverage no longer makes sense. Thats because the maximum payout would be the value of the car if its totaled or stolen, minus your deductible. If your car is worth very little, youre paying for coverage that may result in only a small insurance check.
But if you would be in a financial jam if your car were totaled, stolen or extensively damaged by a problem covered by the collision and comprehensive insurance, keeping them makes sense.
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Find Rock Bottom Insurance Rates
Youll get the most competitive insurance rates for anyone within your risk category if you follow the guidelines in this guide. There is no reason to overpay for insurance on their car, especially because there are so many insurers who are trying to get your business.
Insurance companies charge more for car insurance because theyre lazy. But the person who understands how insurance works and is clever enough to make use of the many loopholes in it will be able to save a significant amount on their premium over the long term.
Before you step foot into an insurance agency or visit an insurance site, be sure you print out this guide and follow it carefully to ensure you receive the most favorable insurance rate you can get. Car insurance is cheap.
Information About Loss Data And Insurance Rates
The sections below list specific models that may be cheaper to insure based on how many fewer bodily injury claims, or “losses,” they have compared to the average for all passenger vehicles. This is shown as a percentage below the average loss rate. The lower the percentage, the fewer claims the specific model has been involved in. These percentages are calculated by the Insurance Institute for Highway Safety Highway Loss Data Institute and don’t directly reflect insurance rates. The car models listed are intended to be a starting point for someone who is looking for a vehicle that might have cheaper rates for insurance policies.
The sections below also show average insurance rates for specific vehicle classes including SUVs, pickups, and sedans. These averages are based on the cost of a policy with liability, medical payments, uninsured/underinsured motorist, comprehensive, and collision coverage, as reported in AAA’s 2020 edition of the “Your Driving Costs Brochure.”
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How To Lower Your Car Insurance Premiums
Now that you understand the factors that go into calculating your insurance rate, you’re probably wondering what you can do to lower your premiums. Luckily, there are some things that are in your control and are short of buying a new car or moving out of state. Here are a few simple ways you can pay less.
Choosing The Best Insurer
Cost is certainly one factor when it comes to car insurance but your insurer selection must be based more on the reliability. You can easily contact a number of insurance companies, request estimates, and then choose the lowest bidder. Even if the lowest-cost insurer is more affordable than hundreds of dollars per year in premium payments and you get into an accident or needing to repair your car, or get medical attention from a sloppy and ineffective firm, it wont make a difference. It is crucial to choose a good business. Its not just about car insurance, but also about the best rates for insurance.
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Review Your Auto Insurance Coverage
Its good to review your policy regularly to make sure your current coverage, limits and deductibles still are best for your current situation.
Do you have optional coverages on your vehicle you dont use or want, such as roadside assistance or rental reimbursement insurance? If so, take them off to get cheaper car insurance.
Cheapest Vehicle To Insure By Car Type
When shopping for a new car, most people already have a vehicle model in mind. For example, a person with a family may want a minivan to keep everyone safe on the road. A rural farmer may need a standard pickup truck to transport equipment and tools.
Here is SmartFinancial’s list of the cheapest vehicles to insure by type.
EPA Size Class
SmartFinancial tabulated data from thousands of car insurance premiums and quotes. To our surprise, we found reliable cars, station wagons, minivans and SUVs have the lowest car insurance premiums. According to the IIHS, larger vehicles have a better safety record, and smaller cars have a higher statistical chance of accidents.
According to Joe Nolan, IIHS senior vice president of vehicle research, “Smaller vehicles offer less protection for the driver in crashes, and their lighter mass means that they take the brunt of collisions with larger vehicles.”
The IIHS found that small cars and minicars accounted for 15 of the 20 models with the highest death rates. The lowest death rates occurred in large, luxury SUVs.
Small station wagons have cheap car insurance premiums because these vehicles keep drivers and passengers safe.
Small station wagons have the cheap car insurance premiums because these vehicles keep drivers and passengers safe. Additionally, minivan drivers are less likely to engage in risky behaviors on the road because they are transporting passengers.
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Tips To Choose The Cheapest Car To Insure
When youre about to buy a new car, you can avoid models with high insurance premiums while still finding a vehicle you like. Use the following tips to find low-cost insurance cars.
- Skip the newest model. The latest models always cost more than vehicles, even a few years older. You can save hundreds on your insurance by picking an older car.
- Avoid high-end vehicles. Mid-sized and large luxury vehicles come with some of the highest insurance rates. Unless your heart is set on a luxury car, you can save money by avoiding BMW, Mercedes-Benz, Bentley, and other highend names.
- Be cautious with hybrids. Hybrids often have higher insurance rates due to larger price tags and steeper repair costs. However, fuel savings might make up for higher insurance rates.
- Pass on sports cars. Sports cars offer speed and high performance. While those characteristics make for a fun ride, insurance companies are more cautious. Youll see higher insurance costs for sports cars, especially if theyre high-end vehicles.
- Avoid cars popular with thieves. If your car is the frequent target of thieves, youll pay more for insurance.
While choosing the right car is important, its not the only factor influencing your insurance rates. However, keeping the above tips in mind when you shop for a new car can help you keep your insurance costs down.