Why are SUVs more expensive to insure?


Sports Utility Vehicles (SUV) continues to be one of the most popular kinds of vehicle purchased and used by the American public. In fact, 12 % of all vehicles in the roads and highways of the United States are SUV’s. Generally, because of their behemoth appearance, SUV’s are still seen as the safer and more reliable vehicle for the American driver. Generally, men on the wheels feel better, safer and more secure in driving SUV’s, although it does not necessarily guarantee such. But the thing is: SUV’s require high insurance premiums. If you are going to insure an SUV, you are likely to pay 10-20% more than insuring a regular car. What are the factors for such?

Firstly, despite the reputation of being the “safer” cars, these behemoths are more likely to flip, especially when making sharp, hi-speed turns, when it collides with other vehicles, or even when it suddenly avoid accidents. Because of its large structure, SUV’s are top heavy vehicles. It means that the weight of the vehicle is actually more concentrated on its top side, with its centre of gravity in an unbalanced position, especially the ones which sit higher of the ground. This situation makes it more probable to flipping and rolling over. Vehicle rollover accidents are actually costly, both in property and health damage. Car insurance companies dealing with rollover accidents actually spend much, may it be in vehicle repairs or the medical expenses from the victims.

Aside from this, when SUV’s involve in road accidents, they are more probable to cause greater, extensive damage to other vehicles. Ramming an SUV with a convertible for example would surely cause pretty heavy damage to that vehicle. This actually makes car insurance companies spend more payout rates, likewise increasing liability premiums. In addition, damage incurred to SUV’s also come at a price. Generally, when incurring damages, these large vehicles require expensive repairs, even with the slightest collision. When it comes to engine repairs, acquiring needed parts, or fixing body components, one spends a lot of money. There is also this policy of the federal government in which SUV’s are not required to comply with bumper requirements. Therefore, a little bump on the vehicle rear can already translate to several hundred dollars.

Overall, SUV’s do pose higher risks for car insurance companies. With these kinds of vehicles more prone to rollover accidents, and more likely to incur heavy damage, it requires higher costs for medical, liability, and settlement payments. We must remember that higher risks require higher premiums to pay for it, thus more expensive car insurance plan for Sports Utility Vehicles.