Is Insurance Cheaper for Manual or Automatic Cars?

Mainly what separates them is the differences between the two transmission boxes and their operational functions but that is enough for many people to go for an automatic for the ease of driving. Insurance premiums for manual cars are marginally cheaper in comparison to automatics. Costlier repairs due to more complex gearboxes and connected moving parts as well as having higher values for the same reason drive up automatic car insurance.

There is very little meaningful insurance data when it comes to comparing automatic and manual cars. However, according to Admiral (a UK insurer), automatic vehicles are about 5% more expensive to insure because they cost more to repair after damages and there appears to be more claims involving automatic cars than manual, in proportion.

There are other slight nuances as well. For example, only 3% of the cars in the US have stick shift and that makes them unattractive for stealing. There is a very narrow market for them and people would notice it more. Besides, thieves may not be comfortable driving them in the first place.

Also, motorists are less likely to get distracted when they are driving a manual vehicle as well as staying more alert and awake since they are constantly engaged with the gear changing. In contrast, there isn’t much to do when you are driving an automatic car that you may be looking for something to do and otherwise you can get sleepy easily.

Having said that, there aren’t actually any studies proving that automobiles with a particular type of transmission are safer than the other. So, for the point of safety they are probably equal and their differences cancel each other.

In terms of mechanical breakdowns, automatic cars are more complex and likely to cause issues. However, it isn’t conclusive that any of those breakdowns would lead to accidents and claims. Furthermore, the gap is closing because automatic transmissions are built more and more reliably.

Even if having a manual or automatic gearbox doesn’t appear to make a vehicle risky and require carriers to adjust their rates accordingly, slight nuances can be considered within the premium calculations thanks to the ease of including such factors in algorithms these days.

So, the type of transmission on your automobile is considered by insurers when they are calculating premiums. And today, they are likely to know which gearbox your vehicle has the moment you enter the VIN number.

The type of car you own is a significant factor affecting premiums. That is why companies want to know everything about them like their make, model, age, value, transmission type, engine size, body type and any modifications. Every little thing about them is considered carefully in the process.

People mostly choose automatic cars these days because they are easier to drive, especially in city traffic. In addition, it is easier to go for them when the auto is likely to be driven by several family members. The arguments in favor of manual cars are getting less apparent these days because automatic vehicles can be fuel efficient as well. Besides, most of the new automobiles like hybrids and electrics don’t come with stick shift.

It is still costlier to maintain an automatic car and insurance premiums are higher. Nevertheless, the trend is very clear and people aren’t choosing stick shifts and companies aren’t making them. So, these worries are likely to be a thing of the past.

Besides, people aren’t likely to buy a certain type of car so that they can save 5% on insurance. There are so many other ways of saving money on premiums and most of them offer larger savings. For example, simply paying your premium in full can reduce your costs as much as 9% with a few companies.

From these points of view, it is probably fair to conclude that insurance savings for choosing a manual vehicle as opposed to an automatic is hardly significant enough to affect decisions.