Insuring Your SUV
Whether you are hauling cattle feed, musical equipment, or soccer practice-bound kids, you know that insurance on a sport utility vehicle (SUV) is not cheap. In fact, SUV insurance premiums on average cost ten to 20% more than those of most cars. Many different things figure into high insurance rates for SUV drivers. Yet there are ways that savvy consumers can save money on SUV insurance premiums.
Why insuring SUVs costs more
When it comes to calculating insurance rates, insurance companies do not just arbitrarily assign rates, nor do they go solely by vehicle size or price. Instead, your insurance quote is the result of intensive statistical research on collisions, thefts, industry-wide payout averages, those of the company, and more. They consider your age, marital status, driving record, area of residence, and gender, among other personal characteristics as they come up with your premium amount. Here are some of the major reasons your SUV insurance policy costs more.
- Higher occurrence of thefts and vandalism. Insurance companies have historically paid out more on claims related to theft and vandalism of SUVs. They consider SUVs to be "coveted" among car thieves. Since insurance companies rely heavily on stats relating to claims paid out in the past, it is easy to see why they hike their rates for SUVs.
- Increased damage to other vehicles. Many drivers seek SUVs because they are perceived as safer in the event of a collision. What they do not consider is the amount of damage an SUV can do another car, or to property when an accident happens, given their mass. Here again, insurance carriers need to make up for what they pay out by higher premiums.
- Higher medical payouts. With more damage to other vehicles and property comes a greater risk of injuries. If an SUV strikes a pedestrian, he or she is likely to have a much more severe injury than if a car hits a pedestrian. Thus, higher medical payouts associated with SUVs also contribute to that higher rate.
- High repair costs. While they cause more costly damage, SUVs are also generally more expensive to repair. SUV manufacturers do not have to adhere to a federal regulation that requires car manufacturers to furnish autos with material that better withstands low-speed impacts.
- Risks of driving an SUV. With their high center of gravity, SUVs are much more likely than cars to flip on a sharp turn. This fact is in sharp contrast to the widely-held notion that SUVs are the safest vehicles out there.
The good news
The stats may not be pretty for these wildly popular vehicles, but there is some good news. If you must drive an SUV, there are ways that you can beat the odds and save on your insurance premiums.
- Check ahead. Before you get carried away at the auto dealership, give your insurance agent a call to see what kind of rates you will likely get on the model you want to buy. If it seems a little high, do this with similar models.
- Keep your driving record clean. Keep premiums low by being a safe driver, maintaining the speed limit, and avoiding collisions.
- Boost your deductible. Offering to pay more money out-of-pocket on a claim will result in lower premiums. Do this only if you are comfortable paying the agreed-upon amount in the event of a claim.
- Ensure safety. Safety features like anti-lock brakes and airbags give you automatic discounts on auto insurance. Your SUV probably has these features. If not, installing them is probably a good idea even if there was no insurance discount.
- Buy multiple insurance from the same carrier. You may be able to score a discount if you purchase your home and auto insurance from the same carrier.
- Be a repeat customer. Just as you benefit from buying multiple types of insurance from the same company, your auto insurance carrier may take loyalty into account if you have been a long-time policy holder who has always paid on time.
Any way you slice it, insuring your SUV will not be cheap. Yet you can save some money with a little effort and a lot of good driving.
