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From seeking greater fuel efficiency to carpooling, some American drivers are looking for ways to save on ownership costs.
But one thing most can't do without is car insurance. Each of the nation's 50 states has laws that require drivers purchase liability insurance or proved enough "proof of financial responsibility" to cover a claim in case of an accident.
The good news is, premiums are dropping! The average in May was at its lowest point in a year at $1,871 per car, down from the national average of $1,982 in October, according to Insurance.com's RateWatch, a Web site that tracks annual average insurance rates. Even though premiums are decreasing, they are still a major expense, and therefore a major consideration for most consumers when purchasing a new car.
The 185-horsepower, 2009 Hyundai Santa Fe costs an average of $832 a year to insure, the lowest of a list of just under 300 2009 models surveyed. The Saturn Vue costs an average of $911 a year to insure, and a Kia Sedona can be covered for an annual cost of $857.
Behind the Numbers
Our numbers come from Insure.com, an online information clearinghouse for consumers. The company calculated nationwide average car insurance premiums for almost 300 2009 model-year vehicles. Averages are based on a 40-year-old male driver who commutes 12 miles to work. This driver has policy limits of $100,000 for injury liability for on person, $300,000 for all unjuries and $50,000 for property damage in an accident; and a $500 deductible on collision and comprehensive. This policy also includes uninsured motorist coverage. Rates were averaged across multiple ZIP codes and insurance companies.
Of course, a car's value will jack up a driver's rates, as will the driving record of the person behind the wheel, says Jack Nerad, executive editorial director and market analyst for Kelley Blue Book.
Other factors can play a part too, such as potential loss. For example, the Hummer H2 was the eighth-most stolen car n America, according to the Insurance Institute for Hughway Safety, which determined its list by claims per 1,000 divided by average loss payment per claim; it is also eighth-most expensive vehicle to insure on our list.
A consumer's ability to compare is another factor. Shoppers may be most familiar with big companies with representatives located nationwide. Comparing the rates at these brand names with those found online and at independent agencies will yield the best deals. Make sure to compare limits and features side by side.
Driver stereotypes also play a role. Expensive, high-performance autos often attract "risky" drivers, says Nerad, and such vehicles are more expensive to fix or replace when involved in accidents. Likewise, autos like sports cars that are popular with younger drivers usually have a higher premium since younger drivers are considered riskier drivers.
Larger vehicles like SUVs and minivans are more likely to be family vehicles driven by mothers, who are historically less dangerous drivers. With lower risk comes lower loss potential, and thus a lower premium. Eight of the top 10 least expensive vehicles to insure are either minivans or SUVs.
But even those with a need for speed are likely to see premiums drop slightly. And, along with premiums, insurance rates have fallen after an increase last year of 8%. Wyoming, South Dakota, Utah, and Idaho experienced the largest rate decreases in May, from 9% in Wyoming to 5.5% in Idaho.
As insurers compete for increasingly discerning consumers, expect this downward trend to continue for the rest of this year.
The Top Ten Cars with the Highest Insurance Rates:
  
10. Porsche 911 $1819/year
9. Lexus ISF $1881
8. Hummer H2 $1912
7. BMW M5 $2020
6. Audi S8 $2071
5. Mercedes G-class $2088
4. Ford Shelby GT500 $2186
3. BMW M6 $2236
2. Dodge Viper $2446
1. Nissan GT-R $2533
The Top Ten Cars with the Lowest Insurance Rates:
  
10. Chrysler Town & Country $915
9. Mazda Tribute $913
8. Saturn Vue $913
7. Smart Fortwo $881
6. Honda Odyssey $871
5. Kia Rio 5 $870
4. Kia Sedona $857
3. Hyundai Entourage $848
2. Kia Sportage $840
1. Hyundai Santa Fe $832
If you are in the market for a new vehicle, but you're not sure what your insurance will cost, just give your agent a call. We'll be happy to quote it for you and give you all the information you need to make your next auto purchase.
ABOUT FAMILY INSURANCE
Phone # (405) 329-9780
Fax # (405) 823-6917
http://www.gotomypolicy.com
paul@familyinsu.com
Posted On
6/18/2009 1:37:04 PM
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