Smaller Cars = Bigger Insurance Bills

The whole purpose of buying a little car is so you don’t have big bills. In fact, some smaller cars cost more to insure than bigger ones.

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.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

Read Next: Ask Stacy: Do I Really Need to Wait Until Age 70 to Collect Social Security?

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,463 more deals!