Buying a car can be an exciting adventure. But don’t forget the to consider the cost of car insurance when you’re choosing which automobile to drive off the lot.
There are many factors to pricing car insurance, such as your driving history and even your credit history. The make and model of your car is one of those factors, as the newspaper reports in a story about the most expensive cars to insure. According to USA Today:
The Insurance Institute for Highway Safety, a nonprofit research organization funded by auto insurers, collects data on insurance claim frequency and insurance cost per vehicle. In a given year, insurance companies make claim payments of roughly $900 on average per vehicle. Some vehicles get into more accidents, and some have higher payouts for each accident. Insurers make claim payments on some models averaging less than $600, while they are more than double that on others. 24/7 Wall St. reviewed the 25 cars with the highest annual payouts. Many of the cars that are most expensive to insure are large or midsize luxury vehicles. Many of the cars that are the least expensive to insure are small to midsize SUVs.
Russ Rader, senior vice president for communications at the IIHS, noted that while insurance claim payment averages do not represent directly what owners might pay for insurance, they roughly reflect how much they can expect to pay. Insurers transfer higher expected costs to the consumer. If insurers can expect to pay out more frequently and in larger amounts on certain models, they will charge higher premiums.
Not surprisingly, Tesla’s Model S and Mercedes’ S-Class four door were the most expensive cars to insure.
When it comes to car insurance, Seeman Holtz Property & Casualty’s experts can help you get the best coverage for the best price, no matter what model car you choose.