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Buying a car involves a number of costs other than the actual purchase price of the car. One of those costs is car insurance. Often times, people don’t consider the cost of insurance when looking for a car. Many people do not realize that the price of car insurance varies from car to car. Because car insurance can be expensive, it is important to understand why it is expensive to insure some cars over others, as it can affect a country’s price by hundreds of dollars.
The type of car you drive affects the price you pay for insurance. Rates are based on the make and model of a particular car. A car with a low loss history will be cheaper to insure. For example, if you buy a new car that has no history of accidents and other damage claims, the fee you pay will generally be based on the manufacturer’s suggested retail price. The rates will then be adjusted based on your loss history over time.
Insurers will also evaluate characteristics such as the horsepower-to-weight ratio and adjust the insurance rate accordingly. Higher performing cars will tend to have higher premiums. Also, the car’s vehicle safety record will affect premiums. Cars with a good safety record will have lower insurance rates. This is why larger cars and minivans tend to be one of the cheapest vehicles to insure. The car repair history, car safety history, such as the number of accident cases and the size of the car, are evaluated when determining the premiums to be paid.
One of the least expensive cars to insure is the Smart Fortwo, made by Mercedes-Benz. This little two-door coupe comes with a 71 horsepower engine and has a fuel economy range of 33 city mpg. It also has a low history of collision losses. The 2009 Hyundai Santa Fe is another cheap car to insure. The Highway Loss Data Institute notes that Santa Fe has a low history of comprehensive insurance losses and low claims for collision and personal injury protection insurance.
The following is a list of some of the least expensive cars to insure: Hyundai Entourage, Hyundai Santa Fe, $ 832, Saturn VUE, $ 911, Chrysler Town and Country, $ 915, Smart Fortwo, $ 881, Honda Odyssey, Mazda Tribute , $ 913, $ 871, Kia Rio5, $ 870, Kia Sportage, $ 840 and Kia Sedona, $ 857.
Other cheap cars to insure include: GMC Safari, Chrysler PT Cruiser 4dr Wagon, Pontiac Solstice, Pontiac Sunfire 2dr Coupe, Volvo S40 4dr Sedan, Honda Civic, Buick LeSabre, GMC Safari SLE AWD 3dr Minivan, Dodge Caravan SE 4dr Minivan, Ford Taurus (pickup), Buick Century Special Edition 4dr Sedan, Dakota Quad Cab, Saab 38600 Linear 2.3t 4dr Sport Wagon, Volvo XC90, Saturn L300 1 4dr Sedan, Jeep Liberty Sport 4WD 4dr SUV, and Pontiac Montana.
In this troubled economy, we can all benefit from saving extra money. If you are on a tight budget and looking for a new vehicle, choosing a car that has low insurance premiums can save you hundreds of dollars a year.