Whether you’re looking to save money on your car insurance, or thinking about purchasing and insuring a new car, it’s important to remember that the vehicle make and model plays a major role in determining your monthly premium. While there are other factors that play a role in insurance premium, some models of vehicles are more expensive to insure, while others may cost less.
Here is a list of some of the most and least expensive vehicles to insure, and some factors that helped determine why. These vehicle premiums are compared to the national average of $1,904 per year, according to Insure.com.
THE MOST EXPENSIVE
1. Mercedes AMG GT-R topped the list as the most expensive vehicle to insure in 2020, with an average rate of $4,082 per year. This may be due to the 469-horsepower V-8 engine, and a zero-to-60mph time of 3.5 seconds.
2. Audi R8 comes in second place, with an average annual rate of $4,033. With a 5.2-liter dual-injection V10 engine, 602-horsepower, and the ability to drive more than 200 mph, many insurance companies consider this vehicle more of a liability than others.
3. Nissan GT-R came in at third most expensive to insure at $3,994 average rate per year. This vehicle has a twin-turbocharged 6-cylinder engine and can reach speeds of nearly 200 mph, with a 0-to-60 time of 2.9 seconds.
4. BMW M8 Competition XDrive Convertible averages about $3,953 per year to insure. In addition to the high-end luxury status, convertibles are typically more expensive to insure because they are easier to steal and vandalize due to the less solid roofs.
5. Mercedes S65 AMG ranks as 5th most expensive with an average annual rate of $3,911. With a 6.0 v12 engine with 621-horsepower, this vehicle can reach speeds up to 186 mph. The massaging seats give a spa experience to the drivers, and features exhaustive tech and safety features, which are expensive to insure.
THE LEAST EXPENSIVE
1. Mazda CX-3 came out as the least expensive vehicle to insure in 2020, costing approximately $1,324 on average per year. This vehicle is a small CUV, and the 148-horsepower engine isn’t enough to increase premiums. Some of Mazda’s technologies, like the Smart Brake Support and Adaptive Front Lighting, earned these vehicles an IIHS Top Safety Pick spot in past years.
2. Honda CR-V LX was the second least expensive, with an average annual premium of $1,333. This may be due to the Honda Sensing Package, which features a variety of advanced safety features that make it cheaper to insure. Some of these features include lane-departure warnings and steering assist.
3. Jeep Wrangler Sport S came in as the third least expensive. According to Kelley Blue Book, Jeep owners typically drive slower, and because parts are basic and more readily available, they are cheaper and easier to repair. The average annual rate is $1,334.
4. Subaru Outback 2.5l landed in 4th place of least expensive to insure due to the advanced safety features like EyeSight Driver Assist Technology, Advanced Adaptive Cruise Control and Lane Centering Function. Additionally, they earned the 2020 IIHS Top Safety Pick. The average annual rate is $1,335.
5. Fiat 500X Pop rounded out the top 5 list due to its safety features and durability, with an average annual rate of $1,336. The vehicle has seven airbags, Blind-spot Monitoring, Rear Cross Path detection, a backup camera and more.
OTHER VEHICLE INSURANCE FACTORS
Typically, the more safety features a vehicle has, the lower the annual insurance rate will be. That’s because drivers of these vehicles are less likely to be in an accident, or if they are, there is less likelihood of severe damage or injury, which keeps costs lower for insurance companies.
On the other hand, larger engines and higher speeds can increase rates due to the increased likelihood the driver will drive fast and perhaps be more reckless.
Additionally, insurance companies also take into account the cost to repair the vehicle. Sports cars and luxury vehicles typically have a much higher price tag when it comes to materials and repairs, which contributes to the higher insurance rate. This includes both the interior and exterior of the vehicle, plus the technology within the vehicle.
Plus, if the vehicle is damaged or totaled, the insurance company will have to pay for the repair or even replacement costs for the vehicle. So, the more expensive the vehicle is to purchase, the higher the insurance rate.
When calculating insurance premiums, insurance companies also consider:
- Your driving record
- Where you live
- Your credit score
- Your gender
- Your age