Getting the best deal possible on a car is essential for a sound purchasing decision. As such, you need to compare the MSRP, maintenance costs, predicted reliability costs, fuel consumption, and insurance costs. If you manage to find a car you like and one that bests the majority of cars as far as running costs are concerned, you are in a position to strike gold.
Most smart shoppers out there take great pride in scouting cars that will not break the bank during ownership and ones that will also retain decent resale value. However, you also need to opt for a car you want which means that you will have to balance your needs and wants accordingly.
Multiple online sources state that the Subaru Outback, Jeep Wrangler, and the Honda CR-V are the three cheapest cars to insure at the moment. These three and the Subaru Forester, the Ford Escape, and the Ford F-150 were also the top 5 cheapest cars to insure back in 2020.
Many different factors influence insurance costs ranging from the price of the car, your driving habits, limits and deductibles, demographic data, your age, anti-theft devices, your driving record, and so on. This means that a cheaper car does not necessarily mean cheaper insurance.
As previously stated, the Subaru Outback is the cheapest car to insure at the moment because an average annual insurance premium associated with the Outback costs $1,392 which means that the Outback is the only car on this list with an average annual insurance premium under $1,400.
Considering the fact that the Outback costs $26,645 from new it means that annual insurance for the Outback costs 5.22% of its original price. Besides being cheap to insure, the Outback is also a great all-around car that comes with AWD and lots of useful gadgets as standard. It holds its value well and is both safe and efficient considering the segment.
The Jeep Wrangler takes the second spot as the second cheapest car to insure at the moment. Considering the starting price of $28,295 the Wrangler costs $1,416 to insure on a yearly basis which means that you will have to pay a record 5.01% of the original price through yearly insurance premiums.
The Wrangler is many things to many men which means that it’s both a stylish urban commuter and an incredibly capable off-roader. Of course, if you buy a Wrangler to use it for off-roading your insurance costs are likely to spike, but if you use it as a regular commuter you should be well within this cost bracket.
The Honda CR-V is the industry standard as far as superior family SUVs are concerned for a few decades now. It comes as no surprise that so many people rely on the CR-V for their family-hauling duties because the CR-V is so reliable, cheap to run, safe, practical, and relatively attainable.
The CR-V holds the number three spot in this cheapest to insure car list with an annual insurance premium cost of $1,439 in regards to its $25,050 starting price. This means that you will have to pay 5.75% of the original MSRP for insurance every year.
The Subaru Forester also joins the group as the 4th cheapest car to insure on a yearly basis. The starting price of the Forester is $24,495 and the average annual insurance premium is $1,465. This means that you will have to pay 5.98% of the original asking price through yearly insurance premiums.
The Forester is a competitive SUV that gathers lots of interest because it’s so affordable considering what you get for the money. AWD comes as standard and the practicality aspect is class-leading in almost all regards.
The Ford Escape is a true state-of-the-art crossover because it offers lots of technology features as standard. It also looks nice both from the inside and the outside and it offers lots of safety features as well.
However, insurance-wise, the Escape also manages to enter the top 5 cheapest cars to insure list because the annual insurance premium costs $1,476 on average which is 5.93% of the $24,885 original asking price.
The Ford F-150 is the most popular and best-sold vehicle in the US for a while now which means that it should be relatively cheap to own considering that there are so many of them out and about. This means that replacement parts are easy to come by and that Ford tries to do whatever they can to make the F-150 attainable for the widest possible customer base.
As such, the F-150 closes the list of the top 5 cheapest cars to insure because the annual insurance premium for the F-150 costs $1,505 which equals 5.24% of its $28,745 original retail price.
Which cars cost the most to insure?
Sports cars are known for increased running costs because they are usually bought by younger drivers which are more accident-prone when compared to older more experienced drivers. High-end luxury cars are more or less the same story because they cost a lot of money to fix if something goes wrong.
Electric cars are also at the very top of this list because they still hold a high price tag across the entire segment and specific potential repair and replacement costs like replacing the battery tend to range in thousands of dollars.
How does car-theft influence insurance costs?
Cars that are often targeted by thieves are known to cost more money as far as insurance is concerned. This is because car-theft costs tend to be more than what the car is worth. After all, car theft is often associated with additional vandalism such as property damages.
So if your car does get stolen the insurance company needs to pay for the value of the car and all the associated damages which is potentially the highest amount of money an insurance policy could cover.
What are the risks usually covered by car insurance?
It depends on the specific policy you opt for but usually, your car insurance policy should cover risks associated with liability coverage such as medical costs due to injuries and death and different sorts of property damage as well.
More extensive insurance policies might even cover specific costs such as broken windshields and weather damages, theft, hitting an animal while driving, or vandalism.