Is Car Insurance Cheaper for an SUV or Sedan?

Sedans are generally considered typical cars when it comes to insurance, prompting a comparison between the cost of insuring Sports Utility Vehicles (SUVs) and sedans. SUV insurance is often cheaper than insurance for many other automobile types, including sedans. On average, SUVs have lower car insurance rates compared to the national average, with around 18% cheaper premiums achieved when insuring an SUV as opposed to a sedan. However, it’s important to choose your SUV wisely to enjoy these lower premiums.

Auto insurance companies consider various factors when determining premiums, such as the vehicle type, size, repair costs, and safety features. Here are some of the reasons why SUVs generally receive favorable treatment from insurers and consequently have lower rates:

  1. Modern SUVs are environmentally friendly, cost-effective to operate, comfortable, and safe. These features make them trendy with families and often seen as alternatives to minivans and sedans. The widespread popularity of SUVs, especially those with mainstream models, leads to increased availability of parts and competition among repair service providers, resulting in lower repair costs. This affordability plays a crucial role in influencing insurance rates, as insurers take into account the expenses they may incur in the event of a claim.
  2. SUVs are robust vehicles that sustain less damages in accidents. Insurance companies factor in the cost of repairs when determining premiums. These benefits outweigh the fact that SUVs may have slightly higher purchase prices compared to typical sedans.
  3. SUVs are primarily purchased by older drivers and families, contributing to a safer driver profile. Being driven by responsible drivers reduces the frequency of accidents involving SUVs, improving their statistical data and claim experience. Insurance companies consider these figures when assessing the risk associated with a particular car type or group of drivers. Moreover, families often choose SUVs for their spaciousness and safety features, which further enhance their desirability as a lower-risk vehicle.
  4. SUVs often come equipped with advanced safety features like blind-spot detection, lane departure warning systems, and collision avoidance systems. These safety technologies not only reduce the likelihood of accidents but also mitigate the severity of collisions. Furthermore, SUVs tend to perform well in crash tests conducted by organizations such as the Insurance Institute for Highway Safety (IIHS). Insurance providers consider these crash test results and offer better rates for vehicles that score highly in safety evaluations. The presence of robust safety features in SUVs adds an extra layer of protection, which translates to reduced insurance premiums.

It’s worth noting that actual insurance rates depend on the make, model, and trim of your SUV, as well as your chosen insurer. Furthermore, specific vehicle details are just one aspect considered in calculating car insurance premiums. Other factors such as age, driving record, credit history, insurance history, and zip code all contribute to the unique profile of an insurance applicant. In other words, while SUV insurance premiums may be lower compared to other cheaper cars to insure, individual savings may vary.

It’s also important to consider the extent of your comparison shopping efforts. Even if you own a safer SUV and have a clean driving record, someone with similar details may secure significantly lower premiums simply because they actively search for better deals. Therefore, it’s advisable to shop around at least once a year to ensure you don’t miss out on potential savings and improved coverage. By exploring different insurance options and considering your unique circumstances, you can find the most affordable and suitable insurance coverage for your SUV.