Sedan vs SUV: Which is Cheaper to Insure

Every car that you see on the road has some kind of insurance. The government has made it mandatory to have liability insurance to legally drive on the roads. In 2019, there were more than six million road accidents, and this is just for passenger cars. Car accidents are not only dangerous but extremely expensive. You’d be shocked to learn how much a simple dent-fix or a paint job could cost. This is what makes auto insurance indispensable. 

But just like gas, auto insurance is very expensive, making operating a vehicle more expensive than buying one in the long run. But car insurance doesn’t always have to be expensive. Did you know that the type and make of your vehicle can drastically change your insurance rates? Some vehicles are cheaper to insure while other vehicles could be very expensive. This article will explain in detail which one is cheaper to insure; Sedan or SUV? And why is it that one costs more than the other? 

Understanding Auto Insurance

Auto insurance companies are risk management companies. So when they sell a policy that insures your car against some damages, their business is not providing money to fix your car, but it is to assess every possible risk factor and then price the policy in a way so that they can make money. 

This is why everyone’s insurance policy costs differently, and you have to get an insurance cost. The company looks at your driving record, past insurance claims, credit score, and other factors and decides how risky you are to the company. People who have a higher risk of making an insurance claim (due to poor driving record, age, etc) are charged higher than people who are less likely to make a claim (and keep paying the insurance premium). 

The same goes for cars. Each policyholder owns a car, and depending on the type and age of the car, insurance rates can fluctuate. Finding the right car insurance company that provides adequate coverage specifically to the type of car you have is very important. Just like people, different cars have different risk factors, and this is the reason for the difference in insurance rates for sedans and SUVs.

Sedan vs SUV

From every statistic and analysis that we have done and read, it is cheaper to insure an SUV than to insure a sedan. On average, it is around $300 cheaper to insure an SUV than to insure a sedan. This is a generalized statement and your insurance rates depend on the type and make of the SUV. This means that insuring a cheap, locally made sedan will be cheaper than insuring an expensive foreign SUV. 

But if you look at similarly priced sedans and SUVs, SUVs are cheaper to insure. Minivans and cheaper SUVs such as Honda, Chevrolet, Subaru, etc are usually cheaper to insure. But if you consider expensive, large SUVs such as the Jeep Grand Cherokee, Tesla Model Y, Toyota Highlander, etc, you’ll have to pay a pretty penny to insure these cars. But why is there a difference in the insurance rates for SUVs and sedans? 

Why are SUVs Cheaper to Insure

Coming back to the risk factor that the insurance company considers while giving an insurance quote, SUVs are cheaper to insure because of their make, their ruggedness, and the longevity of their design. SUVs are made to be used roughly. They can be driven on-road, or off-road. These cars have better tensile strength, more flexibility, bigger tires, and many more features. 

But when it comes to sedans, not only sedans are a dying breed, but many other maintenance issues come with them. For example, sedans are mostly considered luxury vehicles. They are not compact, and they do not have great ground clearance. It is also seen that spares for sedans usually cost more than spares for other cars. For everyday use, sedans are at a higher risk of getting damaged than SUVs. 

That’s not the only reason why SUVs are cheaper to insure. Other factors can completely turn the table. The cost of insurance depends on the average cost of repairs, spares, etc. Expensive cars that cost more to repair will be expensive to insure. Cars that are easier to repair will be cheaper to insure. 

This is why cars from companies such as Honda, Chevrolet, and Ford are cheaper to insure. They have manufacturing plants in the US. But then why is ensuring Tesla so expensive? This is because Tesla’s spare parts are extremely expensive. Just replacing the windshield of a Tesla could cost you upwards of $1,000. So it is expected that the company will charge more for insurance rates and premiums. 

How to Save Money on Insurance

Just by focusing on the brand of car, you can save a lot of money on auto insurance. Here are some tips and practices to save money. 

Avoid buying expensive cars: Not only will buying an expensive BMW or Mercedes-Benz be expensive, but paying for the insurance would be costly as well, and this cost will be recurring. It is better to get locally-made cars that are cheaper to insure. 

The case for hybrids: Hybrid cars are fuel-efficient, and that is something we sorely need. But these cars are expensive to repair and will cost you more to insure as well. 

Drop some insurance coverage: If your car is very old, and the actual cash value of the car is not too much, then it is better to just drop some insurance policies such as collision and comprehensive coverage. This will help you save some money and in case you get in an accident, you can use the money you saved on insurance premiums to pay for the repairs. 

Author: Brandon Park