The Most and Least Expensive Cars to Insure

If you are in the market for a new car (or a used one for that matter), you’re probably focusing on gas mileage, horsepower, passenger and cargo space, safety features and, of course, whether or not you can plug in your MP3 player.  But have you checked on how much it’s going to cost to insure it?  Since some cars cost more to repair, that translates into higher claims payments from your insurance company.  Higher claims payments call for higher premiums.  Additionally, certain cars are more associated with riskier driving habits than others.  That, too, results in higher premiums.  And some cars are theft-magnets.  Their value on the street in whole or for parts may be high, so the insurance premiums will rise accordingly.

The 10 best cars to avoid

So which are the cars to stay away from if you are looking to save some money on your insurance bill?  The 10 vehicles that accounted for the highest dollar amount of losses for insurance companies in 2008* (starting with the most expensive) are:

1.    Cadillac Escalade EXT 4WD
2.    Subaru Impreza WRX 4WD
3.    Hyundai Tiburon
4.    Mitsubishi Lancer
5.    Scion tC
6.    Acura RSX
7.    Nissan Sentra SE-R
8.    Suzuki Forenza
9.    Nissan Sentra/Mitsubishi Eclipse
10.  Chevrolet Cobalt two-door

Now for a few notes about why some of these cars create a bigger hole in your pocket.  The Impreza WRX, the Lancer, the Acura RSX, the Nissan Sentra SE-R and the Scion tC have the highest collision rate.  Why?  Statistics show that they are invariably driven by younger drivers, and mostly males under age 25. These drivers have more accidents than any other group (Highway Loss Data Institute) But the car that is most expensive to insure even though it is typically driven by older, more affluent drivers, is the Cadillac Escalade atop the list.  So why is this vehicle that clearly bucks the youthful trend so costly to insure?  It has become an icon of the entertainment industry, especially among the young MTV crowd.  As a popular symbol of pop culture, it has become a popular vehicle to swipe.  It is so enticing to thieves, that the comprehensive premium for this vehicle is six times the national average. *

The 10 least expensive cars to insure

The cars to consider if you want to save on your insurance premiums are these: *

1.  Ford Five Hundred 4WD (now the Ford Taurus)
2.  Buick Rendezvous 4WD
3.  Buick Lucerne/Buick Rainier 4WD/Honda Odyssey
4.  Ford Freestyle 4WD/Subaru Outback 4WD
5.  Buick Rendezvous/Honda Pilot
6.  Chrysler Town & Country LWB
7.  Honda Pilot 4WD
8.  Buick LaCrosse/Chevrolet Uplander/Ford Escape/Volvo V70
9.  Dodge Grand Caravan/Ford Freestyle 4WD
10. Ford Explorer 4WD/GMC Sierra 1500 4WD/Toyota Highlander/Toyota Sienna

As you can see, these vehicles skew toward midsize SUVs, minivans, or large sedans.  They are typically driven by more careful drivers who have better driving records.  These are individuals who are not as likely to speed or drive recklessly.  They are also not as apt to use the vehicle to commute to work, so they are not on the road as much during rush hour, also lowering the risk.

If saving money on insurance is important to you, buying the right car is one of the ways to contain the costs.  Consider avoiding the ones on the top list and gravitating towards the cars on the bottom list. You don’t have to be a soccer mom to drive a minivan.

*Source: Insurance Institute for Highway Safety, based on 2004-2006 models