Forbes estimates that auto insurance premiums make up about 11 percent of the cost of owning a car over a five-year time period. However, this amount could be less or more depending on the specific car. Therefore, drivers should consider a vehicle's insurance costs in addition to its purchase or lease price before making a decision on whether to drive it.
Most Expensive Cars
In 2010, the majority of the cars that topped the lists of the most expensive cars to insure were sports cars. Some specific models on the list published by Insure.com include the Porsche 911 Carrera, Mercedes S65, Dodge Viper, Porsche Panamera, Mercedes CL600, Audi R8 and BMW M6. Other vehicles on the list by AOL Autos include the Nissan GT-R, Ford Shelby GT500 and Mercedes-Benz G-Class. These vehicles had an average annual premium of more than $2,000.
Least Expensive Cars
In 2010, many of the least expensive cars to insure were vehicles popular for families, including minivans and small sports utility vehicles. Insure.com lists the Mazda Tribute, Honda Odyssey, Chrysler Town & Country, Dodge Grand Caravan, Toyota Sienna, Hyundai Tucson, Kia Sportage and Hyundai Santa Fe among the least expensive vehicles to insure. The AOL Autos list also includes the Hyundai Entourage, Kia Sedona, Kia Rio5, Smart Fortwo and Saturn VUE. These vehicles all have average annual insurance premiums under $1,150.
The current lists for the most and least expensive cars to insure are based on current model-year vehicles. Older vehicles are often less expensive to insure than newer vehicles because of their reduced value. Therefore, the insurance company carries less risk because the total amount it would have to pay in repairs or replacement is lower. In addition, owners of vehicles that are not worth much often choose to not carry comprehensive and collision coverage, which further reduces the cost of insurance.
The least expensive vehicles to purchase are not always the least expensive vehicles to insure. Although many basic compact sedans come with a low purchase price, insurance companies have found that drivers of these vehicles are often riskier. This is because young drivers, who are statistically high risks for accidents, typically cannot afford larger and more expensive vehicles. The least expensive vehicles to insure are often driven by mothers, who are less risky as drivers and often drive during off-peak hours, resulting in fewer accidents, fewer claims, and therefore lower insurance rates on these types of vehicles.