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Small Cars and Auto Insurance


Small cars have been very popular since gasoline prices started to fuel up. Primarily, people buy these small cars to save up on fuel expenses because of the efficiency of these small cars. However, what people do not know is that expenses have only been shifted from the fuel providers to insurance companies. The money saved from gas has been diverted to money paid for premiums.

Small cars are small cars and this makes them vulnerable to accidents. For insurance companies, that means they are more expensive to insure. In addition, these cars may be more difficult to repair. Take for example the spare parts of minis which are a lot harder to find than the parts of a conventional car. Then the production process of the small parts for these small cars cost a lot. Other cars like hybrids are more difficult to repair. Because of this, insurance companies choose to charge higher premiums for these vehicles.

The good thing about being an owner of a small car is that you are less liable for premiums due to coverage of property damage. This coverage is responsible for taking care of costs for repairing another person’s vehicle and property. These smaller cars do not cause as much damage as bigger vehicles. Just imagine a subcompact car colliding with a bus. For sure, it would be the subcompact that will need more repairs. For this very reason, insurance companies might give discounts on your premium. This creates a levelling point for people who own a small car or a hybrid. You may pay higher for repairs, but you save on liability premiums.

Drivers and passengers of smaller cars are more prone to injuries because of the smaller frame of the car. Recall the scenario between the subcompact and the bus. To compensate for its vulnerability, a small vehicle should have a lot of safety devices installed. This would reduce your premium. The same is said for kit cars which are assembled solely by the owner. A standardized quality control procedure is not done on these kinds of vehicles so they may be harder to insure. The best way to counteract this is by installing safety devices.

Then how does your small automobile fare against the determination of insurance premiums. It seems that you will be paying even a lot more than what you would for a car with a standard design, but do not worry; there are some things which you can do to drive premiums down. Aside from installing safety devices, just name one driver in the policy. Of course, you should also get multiple quotes to compare prices.