How Vehicle Make and Model Impact Car Insurance Premiums
After experiencing a drop in 2020 due to coronavirus restrictions, average car insurance premiums in the US increased by 3% in 2021. The rates were still 1% below pre-pandemic levels, according to a new report by The Zebra. The insurance comparison website analyzed over 83 million car insurance rates between September and December 2021 to determine the latest trends and factors affecting car insurance pricing.
The report found that auto premiums have been rising steadily over the last decade, with a total increase of 28% from 2011 to 2021. Among the key factors influencing car insurance rates are the driver’s personal profile, location, driving history, policy coverage options, and vehicle type.
Vehicle Type and Insurance Premiums
The type of vehicle driven significantly impacts auto insurance rates. According to The Zebra’s analysis, vans have the least expensive premiums at $1,655 per year, followed by trucks at $1,735 and SUVs at $1,952. Cars remain the costliest vehicles to insure, with annual rates averaging $2,454.
In terms of brand, Maserati has the highest annual premiums at $4,393, while Fiat has the lowest at $1,499. The report notes that there’s a significant difference of $332 per month between insuring the most and least expensive vehicles.
Vehicle Age and Insurance Rates
The age of a vehicle also affects insurance rates. New cars are more expensive to insure than older vehicles due to higher repair or replacement costs, especially those equipped with advanced features. Data from The Zebra shows that a 5-year-old vehicle is about 27% less expensive to insure than a brand-new one. For example, annual rates for a 5-year-old Honda Accord are $1,443, compared to $1,838 for a brand-new model.
Impact of Advanced Vehicle Technology
The analysis found that advanced vehicle technology doesn’t significantly impact insurance rates. While these features enhance safety and prevent theft, they also increase repair costs. The research revealed that no anti-theft device can save policyholders more than 1% on insurance premiums. Specific devices like active disabling devices or blind-spot warning sensors offer minimal savings of $6 and $3 per year, respectively.
Most and Least Expensive Vehicles to Insure
The Zebra compiled data for the most popular vehicles in the US by sales. The most expensive vehicle to insure is the Maserati Quattroporte at $5,420 annually, while the Mazda CX-3 Sport is the least expensive at $1,440 per year.
The report provides insights into how different factors influence car insurance premiums, helping drivers make informed decisions when purchasing a vehicle and choosing insurance coverage.
