Are your Auto insurance customers getting the best deal when they buy a new vehicle?
A new study finds that some vehicles offer much better value than others when it comes to insurance.
The Quadrant Information Services study, commissioned by Denver-based comparison-shopping site insuranceQuotes.com, examined 20 of the most popular 2015 models, dividing the average annual cost to insure each vehicle by its manufacturer’s suggested retail price, to determine which vehicles are an insurance bargain and which ones carry a high insurance burden.
"There are so many factors that go into pricing an insurance policy for a vehicle, but the average driver rarely takes these into account," says Christopher Paradiso, owner of Stafford Springs, Conn.-based Paradiso Financial & Insurance Services. "A lot of drivers think that a cheaper car means cheaper insurance, but that's not necessarily the case."
For example, the analysis reveals that although the Ford Explorer has an MSRP of $34,345, it only costs an average of $1,300 a year to insure. Meanwhile, the Ford Focus, which has an MSRP of $18,045 costs nearly $1,400 a year to insure, making it a relatively poor deal when it comes to the cost of insurance.
Laura Adams, insuranceQuotes.com’s senior analyst, said it is very important to shop around for car insurance before purchasing a vehicle.
"The recent insuranceQuotes study showed that buying a relatively inexpensive vehicle doesn’t mean that your insurance will also be inexpensive. In addition to important factors — such as your gender, years of driving experience, driving history, and annual mileage — the make and model of the vehicle you drive plays an important role in your auto insurance rate. If you don’t do your homework and shop rates before you buy a vehicle, you could be surprised by an insurance rate increase," she told PropertyCasualty360.com.
Talking with current Auto insurance customers about costs before they consider purchasing a new vehicle can help them — and you — in the long term.
"This is a really important factor to consider when it comes to buying a car, because you may buy a less expensive vehicle that will wind up costing you more in the long run because it's relatively expensive to insure," says Karl Brauer, senior analyst for Kelley Blue Book. "But it's also something people often forget to consider. You may be able to afford the car, but can you afford to maintain and insure that car after it leaves the lot?"
Here are the 20 most popular 2015 vehicles, ranked from worst to best by insurance cost ratio:
(Photo: PRNewsFoto via AP Photo)
20. Ford Focus
Type: Sedan.
Average annual insurance cost: $1,391.
MSRP: $18,045.
Insurance cost ratio: 7.71%.
(Photo: Paul Sancya/AP Photo)
19. Toyota Corolla
Type: Sedan.
Average annual insurance cost: $1,400.
MSRP: $18,665.
Insurance cost ratio: 7.5%.
(Photo: PRNewsFoto via AP Photo)
18. Hyundai Elantra
Type: Sedan.
Average annual insurance cost: $1,384.
MSRP: $19,085.
Insurance cost ratio: 7.25%.
(Photo: Paul Sancya/AP Photo)
17. Honda Civic
Type: Sedan.
Average annual insurance cost: $1,368.
MSRP: $19,910.
Insurance cost ratio: 6.87%.
(Photo: Paul Sakuma/AP Photo)
16. Chevrolet Cruze
Type: Sedan.
Average annual insurance cost: $1,318.
MSRP: $19,695.
Insurance cost ratio: 6.69%.
(Photo: PRNewsFoto via AP Photo)
15. Hyundai Sonata
Type: Sedan.
Average annual insurance cost: $1,367.
MSRP: $21,975.
Insurance cost ratio: 6.22%.
(Photo: Handout)
14. Nissan Altima
Type: Sedan.
Average annual insurance cost: $1,414.
MSRP: $23,125.
Insurance cost ratio: 6.61%.
(Photo: PRNewsFoto via AP Photo)
13. Ford Fusion
Type: Sedan.
Average annual insurance cost: $1,359.
MSRP: $22,985.
Insurance cost ratio: 5.91%.
(Photo: Paul Sancya/AP Photo)
12. Toyota Camry
Type: Sedan.
Average annual insurance cost: $1,371.
MSRP: $23,905.
Insurance cost ratio: 5.74%.
(Photo: John Locher/AP Photo)
11. Toyota Prius
Type: Sedan.
Average annual insurance cost: $1,409.
MSRP: $25,035.
Insurance cost ratio: 5.63%.
(Photo: Katsumi Kashara/AP Photo)
10. Honda Accord
Type: Sedan.
Average annual insurance cost: $1,289.
MSRP: $23,725.
Insurance cost ratio: 5.43%.
(Photo: Mark Lennihan/AP Photo)
9. Toyota RAV4
Type: SUV.
Average annual insurance cost: $1,288.
MSRP: $24,580.
Insurance cost ratio: 5.24%.
(Photo: Reed Saxon/AP Photo)
8. Ford Escape
Type: SUV.
Average annual insurance cost: $1,210.
MSRP: $23,995.
Insurance cost ratio: 5.04%.
(Photo: PRNewsFoto via AP Photo)
7. Ford F Series
Type: Truck.
Average annual insurance cost: $1,341.
MSRP: $27,225.
Insurance cost ratio: 4.93%.
(Photo: Remy de la Mauviniere/AP Photo)
6. Honda CR-V
Type: SUV.
Average annual insurance cost: $1,183.
MSRP: $24,325.
Insurance cost ratio: 4.86%.
(Photo: Seth Perlman/AP Photo)
5. Dodge Ram 1500
Type: Truck.
Average annual insurance cost: $1,302.
MSRP: $26,855.
Insurance cost ratio: 4.85%.
(Photo: Andrew A. Nelles/AP Photo)
4. Chevrolet Equinox
Type: SUV.
Average annual insurance cost: $1,265.
MSRP: $26,105.
Insurance cost ratio: 4.85%.
(Photo: Andrew A. Nelles/AP Photo)
3. Chevrolet Silverado
Type: Truck.
Average annual insurance cost: $1,269.
MSRP: $27,815.
Insurance cost ratio: 4.56%.
(Photo: Paul Sancya/AP Photo)
2. GMC Sierra
Type: Truck.
Average annual insurance cost: $1,272.
MSRP: $28,315.
Insurance cost ratio: 4.49%.
(Photo: M. Spencer Green/AP Photo)
1. Ford Explorer
Type: SUV.
Average annual insurance cost: $1,301.
MSRP: $43,345.
Insurance cost ratio: 3.79%.
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Trudy Knockless
Trudy Knockless is a reporter on ALM Media's Business of Law desk. She has a background serving legal and insurance publications. Contact her at [email protected] or on LinkedIn at Trudy Knockless.
