Cheapest cars for insurance in 2021
Everyone dreams of owning a big house, having a luxurious car, and a great fortune. But, not every person experiences the comfort and joy of driving a car that is their own. Having a vehicle comes with a cost in the form of cost of fuel, maintenance cost, and most importantly, auto insurance charges. If not completely avoided, the car insurance premium can be minimized by purchasing cars with cheap insurance rates. Below is the list of such cars and their insurance prices that you might not like to miss out on:
Honda CR-V: Statistics suggest that Honda CR-V is the cheapest car to insure. Its yearly car insurance cost is $2346, which is comparatively lesser than many vehicles. Honda CR-V gives you the feel of a compact SUV at a budgeted price.
Subaru Outback: Subaru Outback is a low-priced compact car. Past analysis of insurer companies suggests that Subaru Outback has an average auto insurance pricing of $1392. Some companies like Clear Cover Insurance have simplified their Clearcover Auto Insurance procedures by going digital. They have introduced technology to deliver top-notch and quick service to its wide array of customers. Other than the optional, Clearcover Auto Insurance also has add-ons for their valuable clients. You can read more about it on their official website.
Fiat 500x: Fiat 500x is a moderately priced crossover Special Utility Vehicle. Its half-yearly insurance rate is fixed at $722. With that specified, Fiat 500x has inexpensive auto car insurance.
Kia Forte: Kia Forte is considered one of the economical compact cars. It is integrated with several technologies, which makes it an ideal choice for small families. However, it does not include top safety features like other compact cars.
Mazda 3: Mazda 3 is designed for drivers who look for a blend of affordability and sturdiness of a sports vehicle. From its low premium charges to its fuel efficiency, everything is great about this car. Be it a long drive with friends or a weekend dinner with family, this car can make your drives smooth, fun, and unforgettable. Its annual insurance rate on an average basis is estimated at $1324.
Factors that Determine Car Insurance Pricing
Age: Statistics suggest that drivers aged 20 years or below have a history of reckless driving. However, the age becomes a less significant factor when a driver crosses his teen years and falls between the age bracket of 50 to 60 years. Elderly drivers have to pay higher premium rates relative to the mid-50 group.
Driver’s history: Information relating to the driver like his violation history serves as a parameter to ascertain the car insurance premium. Similarly, the insurance firm analyses the driver’s current pattern to arrive at his probable performance in the future.
Credit score
Most people fail to consider this factor, but it has a crucial role to play in computing car insurance premiums. It is proven that a low credit score correlates with the frequency of claim filing. Those with a high score have a relatively lower claim than drivers with a bad credit score.
Vehicle’s make and model: Insurers indeed have different premium rates based on the make and model of a vehicle. But did it occur to you how these are calculated? Factors like the history of claim filing, repair expenses, and the vehicle’s age and size go into the computation of the car insurance rates. If the claims filed for a particular vehicle model are more, then the insurer will set higher premium rates for them. In addition, if a specific make and model have more incidences of theft, then it is likely to have inflated rates of insurance.
Car insurance rates can stain your pocket. Is there any way to minimize them? Yes, it is. Why not shop smart? Here is a list of vehicles that accelerates car insurance pricing. Try not to purchase them:
High-end luxury vehicles: People avoid high-end luxury cars for a reason. Repairing and replacing them imply spending a significant chunk of money.
Electric vehicles: Usually, the cost of replacement of specialty vehicles is pricey, which adds up to the cost of insurance.
Vehicles with minimal safety features: Low safety vehicles are costly to insure as insurers have a fair idea about the theft incidents relating to such vehicle models.
Sports cars: Owning a sports car comes with an exorbitant insurance rate because of its high probability of meeting accidents.
