In an unexpected turn of events, average car insurance premiums across the U.S. are the lowest in a year. News of the economy’s early recovery and better than expected job data has resulted in decreasing insurance premiums among major providers in most states. The latest figures, according to surveys, puts the average auto insurance premium at $1,871.
The latest news surprised industry experts who expected higher than usual premiums this year because of the expected increase in the number of uninsured drivers. Major insurance companies previously expressed intentions to raise insurance rates in the face of more uninsured and underinsured motorists on the road. According to experts, more uninsured drivers mean a higher probability of getting in an accident with one. In order to fully protect policyholders and provide ample liability coverage, providers often have to raise premiums.
The primary consideration that most insurers take into account is the type of car and the specific model that a policyholder drives. Some vehicles are most expensive to insure because of certain features like strong engines and speed-oriented body structures. Other cars models, on the other hand, have safety features that make them more affordable insurance-wise. Car theft rates also affect how providers rank different vehicles. Some vehicles are the favorite of car thieves, pushing up their premiums.
According to recent studies and surveys, minivans and small imported cars are some of the least expensive vehicles to insure. Chrysler’s Town and Country, and the Honda Odyssey cost $915 and $871 to insure, respectively. Small sedans like the Kia Rio5 and the sub-compact Smart ForTwo also cost relatively cheaper to insure than other vehicles, pegged at $870 and $881 respectively. Small Korean SUVs also managed to get on the list, with the Kia Sportage costing owners $840 to insure while the Hyundai SantaFe manages to fetch $832 in insurance expenses.
Experts also listed some of the most expensive cars to insure. Understandably, the list is composed of high-performance sports cars, large SUVs, and European luxury vehicles.
Japanese supercar Nissan GT-R clinches the top place, with $2,533 in insurance costs. The Dodge Viper follows closely with $2,466. German automaker BMW manages to join the lead cars with its M6 model costing $2,236 to insure. Insuring Ford’s premium sports car, the GT500, will set car owners back $2,186. Meanwhile, the Hummer H2 takes the eight place, with experts tagging its insurance costs at $1,912 per year.