When looking for the cheapest SUV to insure, you might believe a larger vehicle will cost more to insure, especially compared to a sedan. This isn’t always the case, so it’s important to know what to look for when shopping for insurance for your SUV.
What Are the Cheapest SUVs to Insure?
The term SUV is a broad one, as these vehicles come in many configurations, models, and styles. As SUVs continue to become more comfortable, safe, and environmentally friendly, they’ve become popular alternatives to sedans.
If you’re debating the pros and cons of purchasing an SUV or a sedan, it’s worth looking at the car insurance rates of SUVs to narrow down your options.
Although prices vary depending on the model, according to The Zebra it’s more than $5000 cheaper to purchase a sedan than an SUV. When looking at the Nissan Altima, which is the most expensive sedan, and the Ford Explorer, which is the most expensive SUV, the cost difference is more than $8000.
The list below, compiled by ValuePenguin, includes popular SUVs, their list prices, and how much it costs, on average, to insure them.
- Honda CR-V: Its list price is $25,102 and cost to insure is $2346.
- Toyota RAV4: Its list price is $20,257 and cost to insure is $2475.
- Chevrolet Equinox: Its list price is $19,837 and cost to insure is $2560.
- Ford Escape: Its list price is $17,710 and cost to insure is $2834.
- Chevrolet Tahoe: Its list price is $39,568 and cost to insure is $2888.
- Chevrolet Traverse: Its list price is $28,009 and cost to insure is $3073.
- Toyota Highlander: Its list price is $29,207 and cost to insure is $3283.
- Jeep Grand Cherokee: Its list price is $26,125 and cost to insure is $3347.
- Toyota 4Runner: Its list price is $31,467 and cost to insure is $3355.
- Ford Explorer: Its list price is $28,322 and cost to insure is $3587.
Farmer’s Insurance offered the cheapest insurance for the Honda CR-V, which has an extensive list of standard safety features as well as flexible and spacious seating. Allstate has the highest rates out of all the companies surveyed, as it charges more than $2000 annually to insure the CR-V.
Does SUV Size Matter for Insurance?
ValuePenguin conducted a study regarding insurance costs and found that the costs associated with smaller SUVs were 17 percent lower than those for standard-sized SUVs. According to the EPA’s size classifications, the three SUVs that had the highest car insurance premiums are all standard-sized SUVs. These include the Ford Explorer, Jeep Grand Cherokee, and Toyota 4Runner.
The same study found that the SUV with the lowest purchase price also carried the cheapest car insurance. These rates for the five cheapest SUVs were 16 percent lower than the five most expensive SUVs.
One reason smaller SUVs have cheaper insurance premiums is because comprehensive and collision insurance claims are cheaper. This insurance coverage pays for replacement or repairs to your vehicle, which often cost more for larger and more expensive SUVs.
For example, if you’re on a budget, the Chevrolet Equinox has an annual insurance premium of $1496. With a standard six-month policy, you would pay $748 or $124 monthly through a payment plan. With the Chevrolet Cruze, which is a sedan, you would pay $1600 per year or $802 for a six-month policy.
The study also found that Progressive and GEICO had the cheapest SUV insurance rates. Their rates were about 39 percent cheaper than other companies surveyed. Selecting one of these two companies over the more expensive option could save you approximately $3352 annually.
It’s important to note that any insurance quote you receive depends on your demographics and driving history. Just because an insurance company is cheap for someone else doesn’t mean it will be for you. So shop around when looking for insurance quotes for your SUV.
How Can You Save Money to Insure Your SUV?
Insuring an SUV might be more expensive than insuring some sedans, but the insurance cost doesn’t necessarily depend on the type of SUV. While you might be able to find different coverage options for an SUV, you don’t need one that’s specifically geared toward SUVs.
It does pay to shop around to find cheaper insurance for your SUV, though. According to ValuePenguin, you could save an average of 40 percent on your premiums. Factoring in the average SUV has an annual insurance rate of $2084, this cost difference is about $1183 annually.
Keep in mind that larger SUVs and trucks are more expensive to insure. Despite being safe for passengers, their size makes them a higher risk to other motorists. Smaller crossover SUVs have some of the cheapest insurance rates, even beating out compact cars.
One of the easiest ways you can lower your insurance premium is to avoid purchasing the most expensive trim levels. Selecting a basic trim can cut back on your overall insurance costs because the SUV costs less to purchase. Ask yourself if you need the add-ons found in higher trims.
Another way to save money includes filing your claims wisely. Unless you carry insurance that includes accident forgiveness, your insurance costs will almost certainly rise once you file a claim. If your SUV suffered damages, weigh your options before filing a claim. Consider paying for the costs out of pocket rather than through your insurance company.
Ask your insurance company if you qualify for any discounts. Even if they’re small, these discounts can add up, especially if you qualify for more than one. Some of these discounts include:
- Multi-policy or multi-vehicle discount.
- Good student discount.
- Paperless discount.
- Payment via bank account discount.
- Paid-in-full discount.
If you’re considering purchasing an SUV but are unsure about how the insurance costs will affect your budget, don’t worry. Depending on the model, the SUV might end up costing less to insure than a sedan. You can also take steps to make sure you’re saving the most money on your insurance premiums.
Sources:
https://www.thezebra.com/auto-insurance/vehicles/cheaper-car-insurance-suv-vs-sedan/
https://suvs.com/news/the-suvs-that-are-the-cheapest-and-most-expensive-to-insure-for-2020/
https://www.valuepenguin.com/cheapest-suv-auto-insurance
https://www.thezebra.com/auto-insurance/vehicles/suv-insurance-rates/
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