Maybe your dream always has been to own a BMW or maybe it has been to drive in a Mercedes convertible with the wind in your hair. Pursuing those dreams, however, could have unexpected costs. Luxury cars, and certain brands in particular, not only cost a lot to buy and repair, they can also cost much more to insure.
As many as 80% of car buyers, by some accounts, don’t consider the average insurance premiums for a certain vehicle brand or model before they buying it. These premiums, however, can be extremely important when it comes to understanding the everyday cost of owning a certain car. The cost of insurance can differ significantly from one model to the next. In fact, the average annual premiums for the most expensive model to insure are almost three times as much as those of the most cost-effective.
Many factors determine premium costs for a vehicle model. Some are tied to the vehicle – the price of the vehicle, the risk assigned to it, and even the cost of repairs. Repairs will cost more, for example, if the car requires specialized or foreign parts. In a study of the most and least expensive cars to insure, Quadrant Information Services used the model of a 40-year-old male who commutes 12 miles to work. The hypothetical driver has a clean driving record and his policy includes uninsured/underinsured coverage. Here’s what Quadrant’s study determined:
The top 10 most expensive cars to ensure
- Mercedes-Benz CL 600, average annual premium: $3,357
- Mercedes-Benz CL65 AMG: $3,330
- Mercedes-Benz S65 AMG: $3,221
- Mercedes-Benz SL65 AMG: $3,207
- Mercedes-Benz CL63 AMG: $3,184
- Mercedes-Benz S600: $3,158
- Mercedes-Benz SL63 AMG: $3,075
- Mercedes-Benz S63 AMG: $2,978
- Porsche 911 Turbo: $2,958
- Porsche 911 Turbo S: $2,925
As you can see, Mercedes-Benz dominates the list, holding the top eight positions. One reason: The brand’s vehicles are among the most expensive to repair. The Mercedes CL series ranks sixth on Forbes.com’s list of the most expensive cars to repair, with an estimated five-year repair cost of $1,540.
The top 10 least expensive cars to insure
- Ford Edge SE, average annual premium: $1,128
- Jeep Grand Cherokee Laredo: $1,148
- Subaru Outback 2.5i Premium: $1,150
- Kia Sportage: $1,157
- Jeep Patriot Sport: $1,160
- Chevrolet Express: $1,171
- Subaru Outback 3.6R: $1,180
- Hyundai Tucson GLS: $1,189
- Ford Explorer: $1,197
- Hyundai Tucson GL: $1,204
This lowest average premium list holds a lot more variety in company and model. SUVs, however, have taken control of the list. Previous years have included minivans in the top spots, but the transformation of the SUV into the family car, along with its lower crash rates and costs of repair, has toppled the minivan. The only small car in the top 20 least expensive to insure is #19, the Honda Fit.
Although it is not popularly utilized, the average insurance rate for vehicle models can be a tool that significantly alters your perceptions about buying certain vehicle brands. It is important have a general idea of what you might be able to expect, auto-insurance-wise, from your car purchase.
Source: AutoInsurance
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