Which Types of Vehicles Get the Best Policy Rates?

The less likely your vehicle requires an insurance company to pay a claim, the less expensive the annual insurance premium will be. Expensive, unsafe, frequently stolen, and imported vehicles come with not only an expensive price tag, but also cost more to insure than typical models do. Before purchasing a vehicle, research the actual cost of owning and insuring each of your favorite makes and models. You may just find that the insurance costs alone are enough to help you make a decision.

It is also important to discuss usage with an insurance professional. Cars used for business are more expensive than strictly personal vehicles. It is also more expensive to insure a frequently driven vehicle compared with one that is infrequently used. Compare a variety of quotes and choose the most affordable policy that fully protects not only your vehicle, but also your family as well.

The following cars are the least expensive makes and models to insure according to the Highway Loss Data Institute (HLDI):

Older, less expensive vehicles

When you buy a new car, insurance companies require you to possess more insurance than someone buying a used, less expensive vehicle. This is because new cars are more likely to be stolen, and require that additional coverage such as additional liability, comprehensive (theft, vandalism, physical damage protections), and GAP insurance (the difference between the car's current value and the financed amount in the case of the total destruction of the vehicle).

Family cars

Drivers who choose to buy a family car such as a minivan are not typically aggressive drivers. This is because family cars typically transport families and are valued for their safety and durability. Most insurance companies treat family car drivers as safety-first drivers and reward them with lower annual premiums. Of course, the premium amount depends on a variety of factors including driver's history, make, and model of the vehicle, and the location of the driver.

Award winning cars

Besides determining the least expensive makes and models to insure, the Highway Loss Data Institute (HLDI) also compiles a list of the safest vehicles on the road. The safer a vehicle is, the less expensive it typically cost to insure it. The HLDI performs a series of tests including front and side impact analysis as well as rating rear crash and head restraint protection. To be an award-winning vehicle, a car must possess ESC (electronic stability control). In 2008, the following vehicle received top safety awards:

Large cars
 Midsize cars
Midsize convertibles
Small cars
Minivans
Midsize SUVs
Small SUVs
Large Pickup
Hybrids

Hybrids not only save drivers gas money, but may also qualify them for additional car insurance discounts. While federal tax incentives have reached their maximum for most hybrids models, most insurance companies still offer hybrid discounts. This is because much like family car owners, hybrids owners are less aggressive drivers and subsequently are involved in fewer accidents.

Domestic vs. foreign

While popular foreign brands like Toyota and Honda have an abundance of available replacement parts, other makes like BMW and Mercedes do not. The access to replacement parts is another variable that determines the cost of insurance. The more expensive it is to repair a car, the more expensive the insurance premiums. Carefully compare insurance rates of both domestic and foreign brands before deciding upon a vehicle.

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