Vehicle prices are on the rise, and so is the cost of car insurance. If you're looking for ways to save money when it's time to buy a new or used car, you'll want to know what vehicle will get you the most bang for your buck. Alongside your driving history, where you live, and your age, your car insurance premium is also calculated based on the kind of car you're insuring.

Before you commit to a specific make and model, consider what types of vehicles generally cost less to insure.

  1. Larger, heavier vehicles. You may think a compact car would always cost less to insure than a larger vehicle, simply because it's smaller — but a smaller car may provide less protection to the driver and passengers in the event of an accident. Larger vehicles that are higher off the ground, like minivans and SUVs, typically have much better safety ratings in collisions, so they may cost less to insure than small sedans and coupes.

    Note: Many larger vehicles may have better safety ratings, but specific models may also be common targets for theft, like certain pickup trucks and SUVs. Always review the most stolen vehicles in your region, as this may result in a higher insurance premium.
  2. Vehicles in basic and practical classes. Vehicle manufacturers often create vehicles in a variety of design and purpose "classes," ranging from small two-door basic sedans to large luxury vehicles. For most gearheads, owning a luxury, high-performance, or sports car is the ultimate dream. But these vehicles are often labelled as "higher risk" to insure. They tend to have poor safety ratings, are more likely to be involved in accidents due to their high speeds, and require expensive parts that are harder to find. With all these factors in mind, choosing a more practical base model vehicle will typically help you save on car insurance.
  3. Older vehicles. It goes without saying: the newer and more high-tech the car, the more expensive parts and repairs will be. You'll also pay more for a newer vehicle at the time of purchase, so your insurance premium will likely be higher. If you're hoping to save on car insurance, consider looking for a used car that is only a couple of years old and is still in great condition.

    The cost of car insurance is on the rise. When buying a new car, try to find a vehicle that is a practical class, has higher safety ratings, and isn't a common target of theft to reduce the cost of your car insurance.

  4. Vehicles with smart safety technology. Vehicles that include a variety of safety features and technology are likely to have better safety ratings, meaning they may help you save on car insurance. Look for some of these safety features when searching for a new ride:
    • Collision warning sensors and cameras
    • Rearview camera
    • Automatic emergency braking
    • Lane departure warnings
    • Winter driving handling
    • Blind spot warnings
  5. Vehicles with low claims and theft rates. Before venturing out to the dealership, do some research online to see what makes and models tend to be common targets of vehicle theft or are reported more often in accidents. These trends may indicate they'll have a higher insurance premium and should be avoided.

These are some of the top types of vehicles that generally cost less to insure — but did you know that there are also a wide variety of car insurance discounts you may qualify for based on your lifestyle, your driving history, and the kind of car you drive? Reach out to your licensed car insurance broker to learn more and see if you qualify for savings.

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