Car Insurance: How the Make and Model Affect Premiums

With over 100,000 car accidents happening each year, car insurance is a must. While there are a lot of factors that matter when figuring out how much your premium will cost, such as driving history, credit score, etc., the make and model of your vehicle are among the most important.

If you’re not familiar with how your car’s make and model can impact the amount you pay for insurance, don’t worry, you’re not alone. Since several factors come into play, many people have a difficult time understanding how exactly the make and model of their vehicles matter when purchasing car insurance.

So, read on to learn how your car’s make and model can impact the insurance rates, as well as which are the least and most expensive cars to insure, so you can make the right decision when shopping for car insurance.

What is the Make and Model of a Car?

A car’s make refers to the manufacturer’s brand name, and your car’s model refers to its exact configuration. For instance, in the case of the Honda Accord, Honda is the manufacturer, and Accord is the model.

The cost of car insurance is affected by a number of factors, including the make, model, cost, trim level, year, and even body style. A high-priced vehicle with extra equipment and a powerful engine will cost more to insure than a simple vehicle with a good safety rating. This is why before purchasing a vehicle, you should collect and examine multiple quotes for car insurance. It will demonstrate to you how the various body types and trims can have an effect on your premium.

Trim is a great way to personalize your vehicle, even if it has the same basic body style as another. For example, there are five different configurations of the 2018 Honda Accord: the LX, Sport, EX, EX-L, and Touring. Trim-level variations often include:

• Standard — The basic model. It’s the least expensive and most basic option available.
• Sport — This is the mid-range trim. The mid-range trim level is the sweet spot between the basic and premium versions, and it often contains a few extras at a reasonable price.
• Luxury — The most luxurious and well-equipped package available. The most costly alternative.

Do Newer Cars Need More Expensive Insurance?

Newer cars are more expensive to insure than older models, and the sole reason for this is that a new car is often worth more than an older one. For example, when an older car gets in an accident, it’s less expensive to repair than if it was new. Additionally, if your vehicle is very old, it can cost more to fix it than it’s worth. On top of that, insuring a new car means you’re also required to have additional insurance, which can add to your costs.

Which Cars Have the Highest Insurance Premiums?

The Tesla Model 3 has the highest and most consistent insurance premiums. The base price of a 2022 Tesla Model 3 is relatively affordable—$44,990, but insurance for the vehicle is quite high—$2,830 a year. Being a premium vehicle, Teslas are more costly to repair and are a more appealing target for thieves, which drives up the cost of insurance for the Model 3 and other Tesla cars.

Jeep Cherokees and Subaru Foresters, for instance, have the lowest insurance rates among today’s most popular cars. You should expect to pay close to $1,060 annually for the insurance on those two cars, on average.

Which Cars Have the Lowest Insurance Premiums?

The Jeep Wrangler Sahara, Buick Encore, and Honda Civic are some of the vehicles that have the lowest insurance costs. Insuring a Jeep Wrangler Sahara, for example, will set you back around $108.91 per month on average. However, the average annual premium for a BMW M5 is $461.91, making it a more costly vehicle to insure. As compared to the BMW M5, the Jeep Wrangler Sahara now has a lower monthly insurance cost of $353.

Take these factors into account if you’re looking for the least expensive car to insure:

• Medium-sized cars — There‘s a widespread misunderstanding that smaller cars have lower insurance rates. But insurers often charge higher premiums for drivers of smaller cars. The most cost-effective vehicle to insure is often a compact car or SUV.
• Cars with a plain design — Insurance costs might be reduced by opting for a less showy vehicle. Insurance companies factor in the increased risk of theft associated with more flashy cars.

Final Thoughts

Keep in mind that insurers are constantly on the lookout for cost-effective means of lowering risks. This highlights the importance of picking a vehicle that is both secure and economical to maintain. In order to get affordable insurance coverage that fits your requirements, it’s important to shop around and compare rates from several providers.