Minivans are one of the cheapest cars to insure. They are pretty safe and not an attractive choice for drivers who are looking for power and speed. And yet many families across the US cannot do without them. They are designed to meet most budgets, parts are widely available and most mechanics can fix them. That is why minivans are almost always better choice than SUVs if you care enough about premium costs.
Age, gender, zip code, marital status, record and credit history is probably the most influential details when auto insurance prices are calculated. Details of other listed drivers are taken into account too and can be more influential than your own details. For example, adding a teen to a policy can double the premium even though you have a pretty good record.
However, choice of automobile can be as influential as drivers’ particulars. As a general rule, safer, slower, mass-produced and daresay boring cars are more affordable to cover. They are statistically much less likely to get involved in accidents than faster, sportier and flashier models. Simply, they wouldn’t be preferred for racing around and showing off.
It is economical to repair a vehicle that has plenty inexpensive parts in the market. Furthermore, these autos are generally competitively priced due to mass production and high competition in the market. This would mean that companies wouldn’t be paying a lot of money even they are stolen or totaled. On the other hand, it can be costly to cover a sport utility vehicle due to specialist parts and complicated repairs.
Importance of Driver Demographics
Family cars are cheaper to insure mainly because of the types of people buying them. Parents prefer them because they can carry more people, they are safe, affordable and economical to run and maintain. And generally, people with children are known to be careful. Assumed demographics play a key role in ratings.
Another key reason for cheap minivan insurance is who is likely to have them. Families are likely to buy one while young people are more likely to be drawn to coupes and smarter looking autos. Some families may feel that a large SUV is safer for families but especially luxury ones like BMW X5 have many sports features that make them high risk and therefore their coverage is expensive. Again young people may not like a boring people carrier but they buy these. This alone is enough to negatively effect SUV accident statistics and premium costs.
When carriers are setting rates they look at the accident statistics. Sport utility vehicles are more likely to roll over in an accident in comparison. Furthermore, they are more likely to cause larger damages to other vehicles and property and injuries to third parties and passengers. When companies are more likely to pay for larger claims they have to ask more money from policyholders.
How Cheap to Insure a Minivan?
There are several reports that compare costs of insuring a minivan and an SUV. The general consensus is that former is almost always several hundred dollars lower. In other words, you could probably save around 20%. Of course the brand you choose, engine size and safety features determine how much would the premium gap be. Vehicles with higher engine size are often more expensive regardless of the type. Often you see them costing more to owners.
You need to consider special circumstances like the number of people you need to transport, who will drive it and how much you can pay for the automobile and how low maintenance you want. For example, you may be put off SUVs when you have a young license holder in the family because they can increase the rates substantially if you choose a more powerful vehicle.
You should always get quotes before making the purchase. Sometimes, people may have to wrong impression for various reasons. Comparing quotes will quickly reveal the score and you can take it from there. You can actually do it right here on the website.