Smaller Cars = Bigger Insurance Bills

With recession raging, car showrooms aren’t very busy places these days. But sooner or later, either incentives or necessity will drive people back. And when they arrive, many will be shopping for a small car with a small price tag.

But small cars aren’t necessarily small in every respect. Example? Smaller cars can lead to bigger insurance bills. This is nothing new: smaller cars have pretty much always cost more to insure than big ones. Why? Well, because they’re economical, they’re more likely to be used for longer trips, increasing the likelihood of an accident. They’re also harder to see. And when they’re in an accident, they’re not as safe.

So how more will you pay to insure a small car? According to insure.com, a 40 year old male would pay an average of $1,700 a year to insure a 2009 Mini Cooper or Honda Civic. And $1,400 for a Toyota Yaris. But a Ford F-150 pickup was only $1,200. And a Honda SUV and Toyota Sienna Minivan were $1,300.

Of course, the rates you pay could vary wildly depending on age, where you live, your record, etc. But the point is, when it comes to insurance, size does matter.

Bottom line? The deal you get on a car isn’t all about the sticker price. There’s financing, there’s maintenance, there’s depreciation, and yes, there’s insurance… Check the whole lot of it before you leave that lot.

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Comments & discussion

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  • Oriana

    That was one of the dumber segments on NBC lately….what about the cost of GAS?? and the cumulative cost of the emissions large cars spew out? With global warming emerging as the biggest threat to life as we know it, you decide it's timely to do a whole segment advising people to buy BIGGER CARS so they can save a measly $100 a year in insurance! Bottom line? Cut the smug one-liners and give some thought to the impact of what you cover in your segment.

  • Oriana

    That was one of the dumber segments on NBC lately….what about the cost of GAS?? and the cumulative cost of the emissions large cars spew out? With global warming emerging as the biggest threat to life as we know it, you decide it's timely to do a whole segment advising people to buy BIGGER CARS so they can save a measly $100 a year in insurance! Bottom line? Cut the smug one-liners and give some thought to the impact of what you cover in your segment.

  • http://www.moneytalksnews.com/ Stacy

    The story wasn't promoting buying a bigger car, Oriana. It was to let people know that there's more to buying a car than just the sticker price or the price of gas. If you think it's wrong for me to inform consumers that they could face higher insurance costs when they buy a small car, then I respectfully disagree. I think it's part of my job. As for cutting out the "one-liners"… not likely.

  • http://www.moneytalksnews.com Stacy

    The story wasn't promoting buying a bigger car, Oriana. It was to let people know that there's more to buying a car than just the sticker price or the price of gas. If you think it's wrong for me to inform consumers that they could face higher insurance costs when they buy a small car, then I respectfully disagree. I think it's part of my job. As for cutting out the "one-liners"… not likely.