Auto insurance can be among the costliest insurance, and state governments usually require vehicle owners to carry it. How much you pay for your car insurance will depend on how much you actually paid for your car, its make and model, its model year, its speed and its safety rating. Insurers classify cars in 20 different groups, and the higher the group ranking, the more money you pay in premiums.
Cars that are cheap are also usually the cheapest cars to insure. Expensive cars tend to have higher insurance associated with them because, if your car is stolen or damaged beyond repair in a accident, your car insurance company must reimburse you for the actual value of your car. Expensive accessories that add value to your car, such as pricey stereos or GPS systems, also increase the premiums you pay.
Sport cars have more of a tendency to raise insurance premiums because they are usually more prone to accidents and theft than other types of cars - and more expensive to replace when this happens. By contrast, minivans are usually very cheap to insure, since they are low-performance and much less of a status symbol.
Older cars are usually cheaper to insure than newer models as long as they have all of the safety measures that insurance companies require, such as seat belts, airbags and anti-lock brakes.
Family cars tend to be cheaper to insure because they are not designed for races or to be very fast. They also do not have extra parts that are expensive to replace, and they generally are not very expensive. Additionally, they tend to have some of the highest safety ratings and the lowest likelihood of getting stolen.
Insurers use the guidelines mentioned above to place car models into 20 different groups. The lower a car's grouping is, the less its owner must pay in insurance premiums. Therefore, cars that fall into group 1 are the cheapest to insure, while cars in group 20 are the most expensive to insure.
Any car within the first 4 groups will have cheap insurance premiums. Some cars that are included in these groups (besides the ones already mentioned above) are the Toyota Yaris and the Smart Fortwo Coupe.
Ronald Kimmons has been a professional writer and translator since 2006, with writings appearing in publications such as "Chinese Literature Today." He studied at Brigham Young University as an undergraduate, getting a Bachelor of Arts in English and a Bachelor of Arts in Chinese.