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Are SUVs cheaper to insure compared to other vehicles? You might be surprised that certain SUVs are cheaper to insure compared to other types of vehicles. Certain makes and models are cheaper on average than others, so it’s best to do plenty of research before you decide on an insurance company.
What Is the Cheapest SUV to Insure?
When you first start shopping for car insurance, you might wonder what make and model of SUV is the cheapest to insure. Examining car insurance rates on SUVs, you might be curious as to what type of SUV is the cheapest to insure. According to ValuePenguin, the cheapest SUV to insure is the Honda CR-V, which costs about $2346 to insure. This is 21 percent less than the average price of $2975 for an SUV.
The top five cheapest SUVs to insure include the following:
- Honda CR-V: $2346
- Toyota RAV4: $2475
- Chevrolet Equinox: $2560
- Ford Escape: $2834
- Chevrolet Tahoe: $2888
The study found that insurance rates for small SUVs were 17 percent less compared to standard-sized SUVs. The five most expensive SUVs to insure include the following:
- Chevrolet Traverse: $3073
- Ford Explorer: $3587
- Toyota Highlander: $3283
- Toyota 4Runner: $3355
- Chevrolet Tahoe: $2888
One of the main reasons why smaller SUVs have lower premiums is that collision and comprehensive claims are less expensive. This type of coverage pays for repairs or replacement of your vehicle, and costs are usually higher for more expensive SUVs.
Which Insurers Offer Cheap SUV Insurance Rates?
ValuePenguin also found that Progressive and GEICO constantly offered the cheapest rates for SUVs. On average, quotes from these two companies were 39 percent cheaper compared to the average costs compared to the other companies. Selecting either of these two companies might save you $3352 compared to the companies with the highest rates.
The study found the cheapest rates from the following companies for these SUVs:
- Honda CR-V: $1634 from GEICO
- Toyota RAV4: $1744 from GEICO
- Chevrolet Equinox: $1630 from Progressive
- Ford Escape: $1649 from Progressive
- Chevrolet Tahoe: $1926 from Progressive
Keep in mind that the average SUV costs surpass that of a sedan, so the rates might also vary greatly. On average, SUVs are $314 annually cheaper to insure compared to sedans.
Typically, larger vehicles, including trucks and SUVs, are more expensive to insure. However, small crossover SUVs have some of the cheapest rates, even when compared to compact vehicles. According to ValuePenguin, the average rate for a small SUV is $2700 compared to $3114 for a midsize sedan and $3120 for a compact car.
Conversely, larger SUVs have some of the highest rates because their size poses an increased risk to others on the road.
What Are the Cheapest Cars to Insure?
If you’re looking at different types of vehicles, you might wonder how the insurance prices vary. According to WalletHub, the five cheapest vehicles to insure include one SUV:
- Subaru Forester: $1773 per year
- Dodge Grand Caravan: $1786 per year
- Honda Odyssey: $1800 per year
- Ford Escape: $1877 per year
- Toyota Sienna: $1966 per year
Breaking it down by vehicle type, the average annual premiums include the following:
- Minivan: $1842
- Crossover: $1905
- SUV: $2043
- Pickup: $2113
- Sedan: $2212
- Coupe: $2392
Minivans are the cheapest vehicle to insure because of their overall safety, and insurers view them as less risky vehicles as drivers don’t typically engage in risky behaviors on the road.
Car insurance premiums are based on a variety of factors, some of which include your location, the type of vehicle you’re driving, your driving record, and your age. Insurers assess the risk of insuring you and your vehicle, and the higher the risk, the higher the premium.
For instance, according to The Zebra, a 30-year-old single male who has a good driving record might pay between $1222 and $1427 each year for insurance on a Toyota RAV4. The same driver operating the same vehicle but living in a more populous area such as Los Angeles or Chicago might pay about $1744 annually, according to ValuePenguin.
Typically, vehicles with high repair costs, poor safety ratings, and higher claims rates receive higher premiums. A poor safety rating means the driver and passengers are more likely to sustain serious injuries due to an accident, which results in more expensive claims.
When shopping for car insurance rates, WalletHub recommends adhering to the following:
- Avoid high-end vehicles. According to the Insurance Institute for Highway Safety (IIHS), cars with the highest comprehensive losses include high-end brands such as BMW, Bentley, and Mercedes-Benz. Also, WalletHub reports that someone driving a Lexus can pay about $1000 more in annual premiums compared to someone driving a Nissan.
- Don’t purchase the newest model. WalletHub reports that purchasing a $36,000 vehicle could equate to paying $1000 more in annual insurance premiums compared to a vehicle only worth $9000.
- Stay away from sports cars. These types of vehicles are usually more expensive to insure because of their high-performance engines and other features geared toward speeding. The IIHS states that the Maserati GranTurismo and Lamborghini Huracan have the highest collision losses.
- Reconsider hybrids. Hybrid vehicles are usually more expensive to insure because they have a higher price tag than conventional vehicles. They’re also more expensive to repair or replace.
- Pay attention to popular models for thieves. According to the National Insurance Crime Bureau, the top five most stolen vehicles include the Chevrolet pickup, Ford pickup, Honda Accord, Honda Civic, and Toyota Camry. These vehicles usually have higher premiums.
- Look at your coverage. If you’re insuring an older vehicle and your annual premium is more than 10 percent of your vehicle’s value, you might want to consider dropping the collision and comprehensive coverage. You don’t want to pay for more coverage than what the vehicle is actually worth. However, make sure you’re still carrying the minimum amount of coverage needed, based on your needs and your state’s requirements.
When you’re shopping for car insurance rates for SUVs, it’s important to remember that different companies take certain factors into consideration. Comparing the costs between several insurers can ensure you’re receiving the best prices.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Insurance losses by make and model
NICB’s Hot Wheels: America’s Top Ten Most Stolen Vehicle Makes
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