Author Topic: Best Cars based on cost to insure?  (Read 3503 times)

k_to_the_v

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Best Cars based on cost to insure?
« on: March 20, 2015, 06:36:53 AM »
Curious about this. I am currently debating selling my current vehicle (very anti-mmm, a 3/4 ton pickup, although there is a very valid reason for it - pulling a horse trailer. I am considering selling the trailer as well and scaling back the equestrian hobby). This car has a KBB of around 23,000.

I currently have a loan on this, I ran some numbers, and I could get something like a Yaris or similar with low milage for around 10,000. I could sell it for slightly more than owe, so that's a financial win on a couple of fronts. Also, of course gas costs would be reduced as well.

But here's the thing. I thought given the change in value, my insurance costs would go down considerably. Nope, they went up considerably. Because I had them quote out a 2012 Yaris. It makes no sense to me that a car with a KBB of less than half my current vehicle would cost considerably more to insure - but my agent said it is a combination of a newer model year and that it is a foreign vehicle.

So...obviously, older is better regardless of value. Was wondering in general if certain models of cars are cheaper to insure than others? I also know that I could drop collision insurance if I paid cash, but I think that is a different issue, as in theory I could pay cash for a truck and do the same thing.

I have not decided yet on whether I'm going to change out the truck for a car, there are other things (both pros and cons) that I am evaluating. But being able to reduce my monthly insurance would definitely help me make a decision.

(An aside...I had a not-at-fault accident a couple of years ago and it affects my insurance rates, so they are high to being with. That will drop off my record next year).

ginklord

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Re: Best Cars based on cost to insure?
« Reply #1 on: March 20, 2015, 06:41:18 AM »
If you haven't, I strongly recommend you shop around. I think that insurance companies all evaluate risk differently, and you may be able to find a great deal.

k_to_the_v

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Re: Best Cars based on cost to insure?
« Reply #2 on: March 20, 2015, 06:49:21 AM »
Should have mentioned I have shopped around a bit, and the two other companies I looked at both quoted a higher price than my current agent. However, that was for my current vehicle. Would it make a difference with a different vehicle?

ginklord

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Re: Best Cars based on cost to insure?
« Reply #3 on: March 20, 2015, 08:46:51 AM »
I think so - it's probably worth checking again on the smaller car. Quotes are pretty easy to get online.

Forcus

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Re: Best Cars based on cost to insure?
« Reply #4 on: March 20, 2015, 11:07:03 AM »
This is not surprising at all. A body on frame domestic truck is much cheaper and easier to fix than a unibody foreign small car (generally). A tweaked frame on a truck can usually be pulled easily but might total the small car. Additionally it seems like parts tend to hold their value for trucks, small cars it's an engine, transmission, a front or rear clip, and that's about it. So I guess what I am saying is I don't think you will find a place that has a lower insurance rate for the car than the truck.

Of course, it doesn't matter. Operating costs, fuel, etc., should more than offset the bump in insurance.

jmusic

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Re: Best Cars based on cost to insure?
« Reply #5 on: March 20, 2015, 11:15:37 AM »
FWIW I pay $50/mo for FULL COVERAGE on my 2008 Honda Fit. 

Liability would be $30/mo, and even though the car is paid off I think it's an acceptable trade relative to the ~$6K I'd get if it was totaled (would take 25 years to pay that much).  I've decided that once the value drops below $4500 I'll make the switch.

JLee

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Re: Best Cars based on cost to insure?
« Reply #6 on: March 20, 2015, 12:44:07 PM »
FWIW I pay $50/mo for FULL COVERAGE on my 2008 Honda Fit. 

Liability would be $30/mo, and even though the car is paid off I think it's an acceptable trade relative to the ~$6K I'd get if it was totaled (would take 25 years to pay that much).  I've decided that once the value drops below $4500 I'll make the switch.

I'm at about $58/mo for full coverage on an '07 GX470 (~$22k book). Insurance companies use all sorts of statistics to determine rates, so if a 3/4 ton truck has very low accident rates and a Yaris has higher rates, I could see why there'd be a difference. Check insurance pricing for Subaru WRX's, for example. Super high!

dunhamjr

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Re: Best Cars based on cost to insure?
« Reply #7 on: March 20, 2015, 01:11:48 PM »
value matters.

but so many other things matter the shear value of a vehicle is often the LEAST reliable way to see if insurance costs will be cheaper.

there are rooms full of mathletes ;) running the numbers to see who buys these cars, how safe those people are, etc.

not to mention the repair costs involved. (a smaller car will likely take on more damage just by the nature of crumple zones, etc... so will potentially need more parts and labor to correct, compared to say a 10yr old Ford F150.)

Gone Fishing

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Re: Best Cars based on cost to insure?
« Reply #8 on: March 20, 2015, 01:23:36 PM »
http://www.thefiscaltimes.com/2015/03/19/Cheapest-Car-Insure-2015

Certainly didn't line up with my expectations!

Le Poisson

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Re: Best Cars based on cost to insure?
« Reply #9 on: March 20, 2015, 01:42:21 PM »
I wonder who makes up these lists - searching for canada, there is huge disparity from article to article.

This list is almost all northamerican cars: http://www.autofocus.ca/how-to/insurance-finance-guides/the-10-least-expensive-cars-to-insure-in-canada

This list is pretty blended - but still sides with Jeep a lot: http://www.cornellinsurance.ca/HelpBlog/cheapest-expensive-cars-insure-2014/

Likely th emost reliable list is from IBC - Insurance brokers of Canada. Apparently my car is pretty low on their list. http://www.ibc.ca/on/auto/buying-auto-insurance/how-auto-insurance-premiums/how-cars-measure-up

Bob W

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Re: Best Cars based on cost to insure?
« Reply #10 on: March 20, 2015, 02:10:21 PM »
So the obvious is to go with a 4K car and liability only.   We can insure a 01 Toyota Camry for $45 a month.   Ours has 390,000 miles on it with never a significant issue that I didn't cause myself.   We are shooting for 500K.    You can find them still with only 80-120K on them.   Literally would last you a lifetime if you drive less than 10K per year.    So buy one!  Take the 6,000 difference and invest it at 10%.    That would cover your insurance costs.   10K and your pretty much done for life!  (our taxes are like $50 a year)

I'm a very careful driver and anticipate I will not be the cause of a wreck.   But I have been the victim and benefited from 60K in underinsured motorist coverage I carried on my car.   Be sure to pay the extra for that.