Is Car Insurance Higher For New Cars – By Tess OwenTess is a Seattle University graduate, longtime PNW resident, and Oxford believer. She writes about anything and everything. and co-authored by Nick VinZant Nick VinZant is a Senior Research Analyst and Insurance Expert at .
Different cars have different insurance costs. Find out how your car is made and how it affects your car insurance rates.
Is Car Insurance Higher For New Cars
A standard car type will not cost more to insure compared to a luxury car, for example. In fact, we found that the safe and fair Jeep Wrangler costs an average of $1,777 a year to insure, while the premium and powerful Jaguar XJR costs $5,478 a year to insure, on average.
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There is more to how a car’s make and model affects insurance rates than the price of the car, as you will learn in this article.
Making your car is the brand that built it. The model is the specific model of your car. Using the Honda Accord as an example, Honda is the make and Accord is the style.
Your car’s make, model, trim, year and body type all play a role in how much you pay for auto insurance. A luxury car model with extra features and a big engine will cost more to insure than a standard car model with a high safety rating. That’s why you should compare car insurance quotes from multiple companies when buying a new car. It will show you how different cuts and body types can affect your premiums.
Even if your car has the same make and model as another, you can customize the trim. The 2018 Honda Accord has five trim levels, including LX, Sport, EX, EX-L and Touring. Cut rate options often include:
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Another thing to consider when buying a car is the body type. Examples of car body types include:
New cars are more expensive to insure than old cars, generally speaking. That’s because new cars are usually worth more than old cars.
If you get into an accident with an older car, the resulting repairs will usually be cheaper than if you were in a new car. Depending on the age of your car, though, it may cost more than its cash value to repair. If you’re in the market for a new car, it’s important to know how the trim level and body style affect your price for the same year, make and model of the car.
To show how much trim and body style affect car insurance rates, we compared car models with different trim levels.
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The difference between the Honda Civic and the Honda Civic EX-T when it comes to car insurance costs is $120.20 per year. That’s because the manufacturer’s suggested retail price, or MSRP, varies by trim level. So, choosing a model with more features may make your insurance rate higher. A higher MSRP means higher repair costs if you have an accident.
The Tesla Model 3 is the most expensive car to insure. The 2022 Tesla Model 3 starts at an average price of $44,990 but at $2,830 a year for full coverage, the coverage is much more than other popular cars.
Insurance for the Model 3 and other Tesla vehicles is very expensive because as luxury cars, Teslas are expensive to maintain and are a very attractive target for theft.
Jeep Cherokee and Subaru Forester are the cheapest popular cars to insure. On average, insuring those two cars will cost you about $1,060 a year.
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The rates quoted are averages taken from major insurance carriers for various age groups. The sample used is a 30-year-old male living in Seattle, WA.
How do you know if a car is too expensive to insure? The most expensive cars to insure share these elements:
We found the Jeep Wrangler Sahara, Buick Encore and Honda Civic to be the most expensive cars to insure. The Jeep Wrangler Desert costs an average of $108.91 per month to insure, according to our data. Compare that to the most expensive to insure, the BMW M5, which costs an average of $461.91 a month. This makes the Jeep Wrangler Sahara $353 per month cheaper to insure than the BMW M5.
The 2018 Jeep Wrangler Desert is the cheapest vehicle to insure, based on our survey of insurers and the quotes we collected.
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On average, it costs $1,306.94 per year to insure this model. Why is Jeep Wrangler car insurance so cheap? Its affordable MSRP, which starts at $28,045, is one issue. Its durability and safety features are among others.
Sports cars are the most expensive cars to insure, as mentioned earlier. Two reasons why these cars cost more to insure are that they have the fastest acceleration and are the most expensive to buy. If you’re looking for a sports car with affordable insurance rates, consider the following:
We found that the 2018 Audi TT Quattro is the cheapest sports car to insure. The average annual insurance cost for this model comes to about $2,481. That’s $1,175 more per year than the cheapest car to insure, and $3,061 less per year than the most expensive car on our list. Car insurance rates are higher for an Audi than your average passenger car because of the speed and resale value, but lower than they are for a faster and more expensive sports car.
How much is car insurance for a new driver? We took our list of the cheapest cars to insure and compared the quote to a 19-year-old male who lives in Seattle as a full-time student. The cheapest car to insure for a teenager or young driver is the 2018 Jeep Wrangler Sahara, which is also the cheapest car to insure for a 30-year-old driver.
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Young men have the highest insurance rates, so premiums are significantly higher for our youth sample driver than for older sample drivers. The average annual insurance cost for our 19-year-old driver was $3,932.32, which is $2,625.38
While your car’s make and model play a big role in car insurance premiums, factors like your age, location and driving history also determine what you’ll pay for insurance.
According to our study, car insurance costs an average of $1,255 per year. But your rates could be higher or lower than that based on the specifics of your vehicle, including:
Older cars tend to be more insured than newer cars. One of the reasons for this is that you may not repair your old car if it is totaled and the actual cash value is less than the repair. In that case, you will only need liability coverage, which means cheaper insurance rates. Another reason is that new cars have a high price tag and are often expensive to maintain.
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The value of your car plays a big part in determining your car insurance premiums. The more expensive the car, the more it will cost to repair or replace. If it is a sports car or a luxury car, it will cost even more. That’s why car insurance premiums are so high for expensive cars.
If you drive a sports car with a large engine, a V-8 or larger, your car insurance rates will be higher because of the increased risk of claims from speeding or careless driving.
The make and model of the car you drive can increase or decrease your insurance premiums depending on crash test scores, how often that type of car crashes and the extent of the damage.
When writing a policy, insurance companies look at the level of car theft they are being asked to cover. A high theft car will be expensive to insure. Some vehicles are more prone to theft than others. For example, classic and collector cars cost more to insure because they cost more to repair or replace if stolen or damaged. Older cars often have fewer security features, which makes it easier for thieves to break in and drive up insurance rates.
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In our database, we collected a quote from a leading insurance company for a 30-year-old man in Seattle with a clean record. The sample driver has 50/100/50 coverage with a $500 deductible for both collision and comprehensive coverage.
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