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, their parts are widely available and most mechanics can fix them. That is why mini-vans are almost always better choice than SUVs if you care enough about insurance costs.
Your age, gender, zip code, marital status, driving record and credit history is probably the most influential details when your vehicle insurance price is 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 driver to your policy can double your premium even though you have a pretty good record and you are the main driver.
However, your choice of automobile can be as influential as drivers’ particulars. As a general rule, safer, slower, mass-produced and daresay boring cars are cheaper to insure. They are statistically much less likely to get involved in accidents than faster, sportier and flashier automobiles.
It is cheaper to repair a vehicle that has plenty cheap 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 insurers wouldn’t be paying a lot of money even they are stolen or totaled. On the other hand, it can be costly to insure a sports car or an SUV due to specialist parts and complicated repairs.
Importance of Driver Demographics
Minivans are cheaper to insure mainly because of the types of people driving them. Parents prefer minivans because they can carry a large family, they are safe, affordable and cheaper to insure, run and maintain. And generally, drivers with children are known to be safer. Assumed driver demographics play a key role in vehicle insurance ratings.
Another key reason for cheap minivan insurance premiums is who is likely to drive them. Families are likely to buy a minivan 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 their families but especially luxury SUVs like BMW X5 have many sports features that make them high risk cars for insurers and therefore expensive to insure. Again there is a very little chance that young people buy minivans but many young people like to drive SUVs. This alone is enough to negatively effect SUV accident statistics and premium costs.
When carriers are setting their rates they look at the accident statistics. SUVs are more likely to roll over in an accident in comparison to minivans. Furthermore, SUVs are more likely to cause larger damages to other vehicles and property and injuries to third parties and their passengers. When insurance companies are more likely to pay for larger claims they have to ask higher premiums.
How Cheap to Insure a Minivan?
There are several reports that compare premium costs of insuring a minivan and an SUV. The general consensus is that Minivans are almost always several hundred dollars cheaper to insure. In other words, you could probably save around 20% on your premium. 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 their type. Often you see SUVs making the list of vehicles with the lowest premiums too.
You need to consider your special circumstances like the number of people you need to transport, who will drive it and how much you can pay for the vehicle and how low maintenance auto you want. For example, you may be put off SUVs when you have a young driver in your family because they can increase the premium substantially if you choose a more powerful vehicle.