As if motorists aren’t already facing soaring new car prices and fuel costs, their car insurance premiums are also costing more than ever these days.
A while ago, we quoted a report that predicted, as more Americans return to their commute and road trips, auto insurance premiums will increase by about 0.6% this year. This is exactly what happens according to the annual lists of average insurance costs that the site makes Insure.com.
Last year, for example, a Honda CR-V compact SUV cost, on average, $1,285 a year to insure, while the most recent numbers pegged the cost to $1,366. A Subaru Outback that requires an average annual premium of $1,330 in 2021 now charges $1,407 for the same coverage.
Car insurance premiums are largely dependent on highly intractable variables such as the driver’s driving history, age, gender, marital status and where they live. An individual’s credit rating can also affect rates. According to these criteria, a young, unmarried driver who has tickets and/or at-fault accidents, poor credit and resides in a large city will pay the most for coverage among all motorists.
But there is one actuarial component that all motorists can control, and that is the car he drives. By this metric, it’s surprising that average prices haven’t been raised a higher percentage, with the average price for a new car currently around $46,500 according to Kelly Blue Bookwhich is 13% higher than it was a year ago.
In general, models that tend to drive nicely, have the highest safety ratings, are relatively inexpensive to buy and repair, and are a complete loss with a lower cost threshold in the event of a wreck are the cheapest to cover. The cheapest model to insure for 2022, according to the website, is the Subaru Forester compact SUV in the 2.5I Wilderness tire, averaging $1,353 per year. Below we list the 20 least expensive models to cover this year’s model year.
On the other side of the proverbial coin, vehicles that, on average, will cost more to secure, tend to be high-end rides that inherently cost a fortune to repair, as well as high-performance models that deliver up to 600 horsepower (or more) on the Sidewalk. We’ll cover this list in a separate post.
Insure.com is based on average annual insurance costs on data from 3,000 separate models collected from the seven largest carriers, in 10 ZIP codes per state, based on a hypothetical 40-year-old male commuting 12 miles to work each day, with my typical Policy limits, clean track record and good credit. It goes without saying that driver premiums will vary based on the above factors.
One way to help reduce car insurance costs is to shop between multiple carriers. Some insurance companies will charge more or less fees to drivers who they deem to be at greater risk of crashing, having their cars stolen, or damaging them. At that time, some companies may refuse to cover certain vehicles and/or drivers entirely.
The driver can also adjust his or her coverage with an emphasis on the bottom line. Cutting liability coverage to the minimum required is one way to save some cash, while the other is to increase deductibles for comprehensive and collision damage components, or drop them altogether if for an older car it’s not worth much more than the top. for deduction. Likewise, consider canceling or denying medical payments, rent reimbursement, and withdrawal coverage.
And be sure to take advantage of every discount offered by a particular airline, which includes cars equipped with specific security and anti-theft features, and for teens and seniors who have taken safe driving courses. Premiums are also usually lower for those who own multiple cars, who “bundle” car and homeowner insurance with the same company, drive a few miles a year, pay annual premiums, and/or who set up automatic payments.
Finally, although some may find it a “Big Brother” intrusion, many companies will rate lower or higher rates depending on an individual’s actual driving habits, based on data collected from monitors plugged into the vehicle’s on-board diagnostic port.
However, here are the 20 vehicles Insure.com research indicates will have the lowest annual auto insurance rates, noting applicable trim levels for each.
Cheapest cars to insure for 2022:
- Subaru Forester 2.5I Wilderness: $1,353
- Hyundai Venue SE: $1360
- Honda CR-V LX: $1,366
- Mazda CX-30 S: $1,379
- Toyota C-HR XLE: $1,384
- Toyota C-HR NightShade: $1,387
- Mazda CX-30 S Premium: $1,388
- Honda CR-V EX: $1,391
- Kia Seltos LX: $1,391
- Honda HR-V EX: $1,398
- Hyundai Venue SEL: $1402
- Ford Transit Connect XL: $1,405
- Volkswagen Tiguan S: $1,406
- Mazda CX-5 S Select: $1,407
- Subaru Outback 2.5I: $1,407
- Honda HR-V Sport: $1,408
- Subaru Forester 2.5I Sport: $1,412
- Toyota C-HR Limited: $1,412
- Chrysler Voyager LX: $1,413
- Jeep Wrangler Willis Sport: $1,415
You can read the full report over here.
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