SUV Insurance Rates
One factor that prospective car buyers do not take into enough consideration is insurance costs. Insurance policy rates can vary significantly between vehicle types. Some types of cars such as sports cars are more apparent that they will have higher insurance costs. But how do SUV rates compare to sedan, hatchbacks, and wagons?
The bottom line is that most of the time SUV insurance rates are more expensive. SUVs are larger and have more moving parts. As a result, SUV repairs are more expensive and repair costs are a big driver of escalating insurance costs.
Model Theft Rates Play A Role In Insurance Costs
Some SUV models also have high theft rates. The Cadillac Escalade is the most stolen SUV and the Chevrolet Tahoe was also a popular theft target. The Escalade is a very pricey SUV that costs more than $60,000 making a theft very expensive for an insurer. Vehicle theft is a loss covered when an insured has comprehensive coverage.
One surprising fact with insurers is that the safety of the vehicle is not a primary factor in determining SUV insurance rates. SUVs have always had a bit of an advantage over cars in terms of safety, as they are larger, heavier, and have higher ride heights. However, truck-based SUVs had high centers of gravity and were prone to deadly rollover accidents.
Vehicle Safety Ratings Are Not As Important For Insurers
However, the switch to car–based crossover SUVs with lower centers of gravity and the advent of new safety technologies such as electronic stability control have significantly decreased SUV rollover incidence. A recent report by the Insurance Institute for Highway Safety found that during the 2006 to 2009 calendar drivers of SUVs were half as likely to die in accidents as car drivers.
Despite their superior safety to cars, SUVs larger size and heavier weight works against them with insurance rates as they cause more damage in accidents. Because repair costs are so expensive for the SUV and the other vehicle(s) in the collision, SUV insurance rates are higher.
Tips To Help You Save On Your Insurance Costs
It is a good idea to check with your insurer or other insurers in advance of a vehicle purchase to get an idea of what your insurance costs will be. That way, you are more informed in advance of a purchase and can take that information into consideration to calculate your total vehicle ownership cost. Once you have made your purchase, get an online auto insurance quote to see who can offer the lowest rate.
Having an SUV could cost you several hundred dollars more per year in insurance costs, which can amount to thousands of dollars in extra cost over the lifetime of vehicle ownership. But if you need the larger size, utility, available all–season driving capability, and superior safety, buying an SUV can be well worth the added cost.
