Insurance coverage is mandatory for registering vehicles, so insurance expenses are also a significant consideration. Insurance rates may depend on certain aspects like driving records, traffic violations incurred, and the location. These are vehicle owner-related factors that affect the coverage premiums. That said, some vehicles are cheaper to insure than others, depending on the nature of maintenance, retail value, and vehicle condition.
Factors That Affect Car Insurance Rates
- Vehicle Make and Model: A vehicle's make and model significantly affect coverage fees. Insurers consider repair costs, safety attributes, theft rates, and crash test ratings. For example, high-end vehicles require expensive repairs when something breaks down. Conversely, cheaper vehicles are more easily fixed, presenting as lower-risk types for insurance companies. That translates to lower rates offered for affordable cars.
- Age and Condition of the Car: The vehicle's age and condition also affect the premium levels. Aged vehicles with lower market values tend to attract a lower fee. The school of thought is that older cars do not have sophisticated features, so the insurer may raise the premium rate due to the potential for mechanical issues. Newer vehicles have advanced safety features, meaning they are less likely to be involved in accidents, hence lower premiums. The theft rate potential for certain vehicles increases the premium fee.
- Safety Features: Safety features may also affect insurance premiums. Insurers typically offer discounts or a reasonable rate for vehicles with attributes such as electronic stability control, driver assistance system, and anti-lock braking, which have been found to prevent accidents or property damage. They are also more likely to be installed in modern vehicles from model year 2015 onwards.
- Repair Costs and Theft Rates: The cost of repairing a vehicle directly affects insurers, considering the associated investment. Vehicles with higher repair costs, such as the rarity or cost of parts, will attract higher premiums. Insurers also have records of vehicle theft in an area over time. That directly influences the cover rate, as high theft numbers of one certain model increase the risk associated with its ownership.
List of the Used Cars for Cheap Insurance
- Toyota Camry
The Toyota Camry is a good-quality model known for reliability and durability. Insurance companies consider the model's track record for requiring minimal repairs over lengthy periods. Even when Camry owners need to repair the vehicle, the costs are moderate compared to what would have been charged on expensive cars.
- Honda Accord
The Honda Accord is known for being one of the safest budget vehicles one can purchase. Its safety features include multiple airbags, stability control, and advanced driver assistance protocols. The Accord also has a reputation for reliability and durability. Its reliability can also contribute to a lower insurance fee as the potential of filing claims for repairs is lower.
- Ford Fusion
The Ford Fusion is a popular option among people seeking low premiums. Parts are available significantly, and a vast network of certified repair shops exists. The Fusion has also performed well in crash tests by institutions like the Insurance Institute for Highway Safety, which means it is a very safe vehicle. The Fusion does not typically rank highly on the list of most stolen vehicles. This adds up to lower premium rates due to low overall risk.
- Subaru Outback
The Subaru Outback is one of the most highly-rated budget vehicles. It has easy repair costs and maintenance. The company also has a strong network of service centers in the country. Insurance companies consider that the vehicle has a track record of few repairs and breakdowns; hence, they do not issue a high premium.
- Mazda CX-5
Mazda has specialized in vehicle safety as a brand and is known for producing technically advanced, safe models. Insurers have taken note of these advancements and considered the number of accidents involving the Mazda CX-5. It is one of the safest SUVs on the market and one of the best family cars to buy. Insurers also rate it as less likely to be stolen, which is why it would have a lower premium.
Tips for Lowering Insurance Costs for Used Cars
One can do a few things to reduce a vehicle's insurance costs. These methods can be employed during the selection of a cover.
- Note 1: Choose a safe and reliable model. Insurance companies typically offer lower premiums for vehicles with good safety ratings. Optimally, look for vehicles with airbags, stability control, and driver assistance tools.
- Note 2: Increase the deductibles paid out of pocket before the insurance coverage kicks in. A higher deductible leads to a lower premium.
- Note 3: A clean driving record with no traffic violations or accidents usually places the driver in favor of insurers so that they will get a lower-than-average premium.
- Note 4: Shop around for insurance, as prices vary among the available providers. Analyze the accumulated options and premiums offered by different insurance firms to find the most affordable one.
- Note 5: Credit scores are an excellent point to note, in alignment with keeping a good driving record. Insurers typically trust individuals with good credit ratings because it is a sign that the person is a responsible driver. While that may not be true, it still translates to a lower potential premium. Lower credit scores also translate to a higher insurance premium because the individual is associated with higher risk.
Vehicles that are more safe or reliable will probably attract lower premiums. Even the theft rate affects the premiums because it factors into risk assessment. Hence, individuals seeking low-rate covers can search for used vehicles with advanced safety features considered as reliable as those illustrated. Similarly, the vehicles should have a low theft rating to be deemed worthy of low premiums.
