There are many factors that affect which car is the cheapest to insure. These determining factors include vehicle details, car insurance coverage options, and your personal driving profile. In the following sections, we’ll break down all the possible factors that would go into determining car insurance premiums and how you can lower them.
vehicle factors that affect auto insurance rates
Even if you don’t select one of the cheaper models listed above, it’s possible to find affordable rates. Below, we’ll go over the critical elements auto insurance companies consider when setting premiums for coverage.
Reading: What cars are cheap for insurance
- vehicle age: Most people assume that older cars get cheaper auto insurance coverage, but that’s not always the case. some new cars command lower premiums due to added safety features, though this is often offset by higher repair costs.
- vehicle type: Small SUVs and minivans generally receive lower auto insurance rates, while sedans and full-size SUVs cost more to insure. cheap auto insurance is hard to find for those with trucks, electric vehicles, luxury models, and sports cars.
- trim level: The better your car’s trim level, the more expensive your auto coverage is likely to be. That’s because premium models have features that cost more to replace.
- safety features: If your car performs well in safety tests by the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety, you’ll likely have lower rates. Safety features like airbags, anti-lock brakes, and seat belts will also lower your car insurance costs.
- car theft rates: Certain car models are stolen more often than others, according to an annual study by the National Insurance Crime Bureau (NICB). Vehicles that are often targeted by thieves are likely to have more expensive auto insurance policies.
- level of coverage – Your minimum vehicle coverage will cost less than full coverage auto insurance. however, you will receive very little protection for your car in the event of an accident if you opt for the state’s minimum coverage limit.
- deductible amount: Those with high deductibles receive lower rates for auto insurance, but also pay more out of pocket when damage occurs.
- combination policies: You may pay a lower price if you include other types of insurance, like homeowners or renters coverage, under the same policy as your auto coverage.
- Annual mileage: Insurance companies often charge lower rates to policyholders who don’t drive as much, since spending less time on the road makes them less prone to accidents.
- driving record: If your driving record contains a recent accident, speeding ticket, or DUI, expect to pay a lot more for auto insurance. the cheapest fares are generally awarded to those with no recent traffic violations or insurance claims.
- age, gender, and marital status: Teen drivers, young drivers who are male, and single men and women tend to pay more for car insurance. As men age 20, rates decline and level off with what women drivers pay.
- credit score: People with bad credit receive extremely high auto insurance quotes because providers consider them to be high-risk drivers. drivers with low credit scores often pay even higher rates than those with speeding tickets and at-fault accidents.
- Location: You’ll pay more if you live in an area with a high crime rate, higher rates of uninsured drivers, or a high number of accidents. Those in urban areas like New York City or Southern California generally pay higher rates than residents of rural regions.
options that affect auto insurance rates
Certain decisions a driver makes can influence the cost of their auto insurance. Here’s a look at some of those factors:
personal factors that affect car insurance rates
Even cars with the cheapest car insurance rates can be expensive to insure if personal factors indicate you’re a high-risk driver. Here are some characteristics that often lead drivers to increase auto insurance premiums:
having good credit and a clean driving record can make it easier to get affordable auto insurance. While cars with the cheapest auto insurance rates may have lower costs, coverage is likely to cost more than the national average if your record indicates potential risks.
auto insurance discounts to help lower rates
You may find cheaper premiums by carefully considering auto insurance discounts offered by providers. Here’s a look at some ways policyholders can save money.