Buyer’s Remorse: Will Your New Vehicle Impact Your Rates?

I am currently searching the market for a new vehicle. My trusty Pontiac G6 has treated me well, but I think it may be time for an upgrade. Let’s just say, it has had one too many run-ins with the local wildlife. When buying a new car, we take a lot of things into consideration. The overall appearance, gas efficiency, seating capacity, and extra options like heated seats or built-in GPS are all factors that we take into account. But do you ever consider how certain vehicles will impact your insurance premiums?

As I was researching vehicles and narrowing down the best options, I discovered an article on Insure.com that said the average annual cost of car insurance is around $1,605. After calculating the yearly average cost, they conduct an annual study to determine which vehicles have insurance costs that fall below and above the average.

The vehicle with the lowest average annual premium last year was the Honda Odyssey LX, followed closely by the Jeep Renegade Sport. In fact, several models of Jeeps made the list, most likely due to their low repair costs and safety features. Several Hondas and Fords made the list as well.

As you would expect, the more luxurious cars are the most expensive to insure. New model Mercedes, Audis, and BMWs can be found on the list, with the most expensive being the Mercedes S65 AMG Convertible. According to the article, these vehicles tend to be more expensive to insure because they cost more to repair in the event of an accident, and they tend to be driven more aggressively due to the higher horsepower. The annual premium for these types of vehicles can cost up to four times the amount of that of a car on the “cheap” list.

I think the Notorious B.I.G said it best when he said, “Mo’ money, mo’ problems.” When choosing my new car, I’m definitely going to keep this list in mind. For details on your personal auto policy, contact your independent agent.

Watch “Insurance 101: What Determines the Cost of Auto Insurance?” to learn more about the factors considered to calculate the price of your auto insurance.

Resource:
Insure.com’s 2017 Most and Least Expensive Vehicles to Insure. Matt Vallet. June 15, 2017. https://www.insure.com/car-insurance/insurance-rates-by-car.html

Copyright © 2018 Central Mutual Insurance Company. All rights reserved.

One Comment on “Buyer’s Remorse: Will Your New Vehicle Impact Your Rates?

  1. Pingback: Buyer’s Remorse: Will Your New Vehicle Impact Your Rates? – Insurance

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