To Get Cheaper Insurance Rates, Buy This Type of Car

Photo (cc) by David Guo's Master

Bigger cars are better when it comes to insurance, a new report shows.

An InsuranceQuotes.com analysis of 20 of the most popular 2015 models found that the Ford Explorer, a full-size SUV, offers the best insurance value ($1,301 annually) and the Ford Focus, a compact, has the worst insurance value ($1,391).

InsuranceQuotes.com notes that the difference is “shocking” because, with a manufacturer’s suggested retail price of more than $34,000, the Explorer costs nearly twice as much as the Focus.

The analysis ranked the 20 vehicles based on a cost ratio that takes into consideration both annual insurance costs and manufacturer’s suggested retail prices for base models.

Eight of the top nine insurance values were sports utility vehicles or trucks, and the 11 worst insurance deals were sedans.

Larger vehicles are less likely to be damaged in accidents, provide greater protection for passengers and tend to be driven by more responsible people (for example, middle-aged parents), InsuranceQuotes.com’s study found.

By comparison, sedans are more vulnerable to damage, tend to be driven by riskier people (for example, young, single men), and have high theft rates.

Based on the InsuranceQuotes.com ratio, the five best insurance deals are:

  • Ford Explorer — 3.8 percent cost ratio
  • GMC Sierra — 4.5 percent
  • Chevrolet Silverado — 4.6 percent
  • Chevrolet Equinox — 4.846 percent
  • Dodge Ram 1500 — 4.848 percent

The five worst insurance deals are:

  • Chevrolet Cruze — 6.7 percent
  • Honda Civic — 6.9 percent
  • Hyundai Elantra — 7.3 percent
  • Toyota Corolla — 7.5 percent
  • Ford Focus — 7.7 percent

Laura Adams, InsuranceQuotes.com’s senior analyst, notes:

“This study highlights why it’s so important to research insurance costs before buying a car. They’re an important part of the total cost of ownership and don’t always move in tandem with the purchase price.”

Are you surprised that bigger vehicles can be cheaper to insure? Sound off in our Forums. It’s the place where you can speak your mind, explore topics in-depth, and post questions and get answers.

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