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2014-05-05
By: Advocate Brokerage
Whether you’re buying you first automobile, giving a car to as a graduation or Sweet 16 gift or just want a simple car that is cheap to run, paying attention to potential insurance premiums can save you money.
When it comes to insurance costs…. all cars are not equal.
Kelley Blue Book annually lists the vehicles that are the cheapest to insure. In previous years, this list was dominated by the minivan, but the rise of the mid-sized SUV and crossover vehicle, the plain-but-practical family van yielded its reign.
Topping KBB’s list of the 10 Least Expensive Cars to Insure this year was the Jeep Wrangler Sport. In fact, the Jeep brand took a remarkable three places in the top 10, and seven of the top 20 spots. Let’s take a look at the top 10 list:
| 1 | Jeep Wrangler Sport | $ 1,080 |
| 2 | Honda Odyssey LX | $ 1,103 |
| 3 | Jeep Patriot Sport | $ 1,104 |
| 4 | Honda CR-V LX | $ 1,115 |
| 5 | Jeep Compass Sport | $ 1,140 |
| 6 | Chrysler Town & Country Touring | $ 1,140 |
| 7 | Subaru Outback 2.5i | $ 1,144 |
| 8 | Dodge Journey SE | $ 1,149 |
| 9 | Honda Odyssey EX | $ 1,149 |
| 10 | Dodge Grand Caravan SE | $ 1,158 |
The same factors that made vehicles like the Nissan GTR very expensive to insure make vehicles like the Jeep Wrangler Sport less expensive to insure. When an insurer looks at how a vehicle will be used, the cars on the top 10 list are seen as family-friendly, suburban vehicles that spend much of their lives transporting children to piano lessons and baseball games — and parents driving kids are among the least likely to speed, crash or submit a claim.
While Jeep’s brand sells on an adventurous spirit they’re usually not driven with reckless abandon. According to a senior analyst from KBB, “Owners of Jeeps tend to be single or married women under age 45, who display prudent driving behavior. For every Wrangler that does serious off-roading, there are dozens that are used to carefully haul kids around suburbia at sub-50-mph speeds most of the time,” he says.
In addition to being driving by more risk-adverse drivers, the least expensive cars to insure are, for the most part, constructed out of more cost-effective materials like steel, rather than aluminum or composites, and do not feature the complex mechanical or electrical systems found in more performance-oriented vehicles.
Jeep Wranglers in particular are very economical to repair, which helps keep insurance rates down. If you get a dent in your door, the body shop can easily remove the door with standard tools and replacement parts are fairly common and inexpensive.
In the end, good rates boil down to claims:
When drivers of a specific vehicle types submit fewer claims and/or less expensive claims, all owners of that vehicle benefit with better insurance rates.
Just because it is cheap to insure does not mean that the car has to be boring or bland. Cars like the Subaru Outback, Jeep Wrangler or Honda CR-V are perfect examples of fun cars that are not going to tax your wallet with insurance premiums.
What do you think? Would you rather drive #1 on the list – the Jeep Wrangler or the list’s #2 vehicle – the Honda Odyssey?
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