Small Car, Big Insurance Bill?
Everyone knows SUVs cost 10-20% more to insure, but did you know that swapping a full-size SUV for a compact could actually increase your car insurance premium? Studies have shown that insurance claims for smaller vehicles are 14% more expensive than for larger vehicles. The average American pays $68 per month for car insurance, but if you drive a compact, you may be paying significantly more.
Smaller Vehicle = Higher Car insurance Rate?
If you own a compact vehicle, you may be paying more for car insurance. A crash study by the Insurance Resource Council found that the average insurance claim in lighter-weight vehicles (2,771 pounds or less) was 14 percent greater than that of the higher-weight group (3,726 pounds or more). Many entry-class compacts lack modern standard safety features, leaving drivers at greater risk of serious injury. Additionally, smaller vehicles tend to be less expensive than larger vehicles, making them a favorite of young, inexperienced drivers.
For these reasons, smaller vehicles are a high-risk for car insurance companies, and drivers of certain compact vehicles are charged a higher car insurance rate.
What About SUVs?
Despite the fact that the Insurance Institute for Highway Safety states that larger vehicles are inherently safer than smaller ones, you probably won't get much of a bargain insuring an SUV either. By virtue of their increased mass, SUVs inflict more damage than smaller vehicles. Also, their susceptibility to rollovers adds another element of jeopardy for auto insurers.These factors contribute to an additional 10%-20% that some SUV owners pay for car insurance.
So How Can You Save on Car Insurance?
If both compacts and SUVs are costly to insure, how can you save on car insurance? Short of purchasing a midsize sedan with a phenomenal safety rating, the best way to save money on car insurance is to shop around for a better rate.
Using Lemon Free's online car insurance quote form, sponsored by InsWeb, you can shop and compare several car insurance quotes in minutes, absolutely free. In fact, the average consumer who compared quotes and switched carriers with InsWeb.com saved an average of $301* on a six-month policy.
Back to Lemon Free.com Insurance Center
*National average savings information based on InsWeb 6-month policyholder survey data from 4/27/05 to 7/4/05.
