Cheapest Cars to Insure in 2014

Why Not Buy a Cheap Car to Insure?

Not Cheap to Insure!

Not Cheap to Insure!

There are a couple of good reasons to consider the cost of insurance premiums when you shop for a new car in 2014 or beyond. In some cases, your insurance premium may represent a substantial portion of the cost of vehicle ownership. Second, there are good reasons that some cars cost less to cover than others, and it is usually because auto insurance company statistics back up the fact that these vehicles may tend to get stolen less often, are involved in fewer claims, and/or are cheaper to repair when they are damaged.

Here are some things to know about the cost of insuring different types of vehicles:

  • The sales price of the vehicle may not reflect the cost of insurance: Typically, medium-priced newer vehicles that are intended for the family market make the list of 2014 cars that cost less to insure. Very cheap and very expensive cars usually come with higher premiums.  Also, used cars are not always cheaper to cover than new cars.
  • The make and model of vehicle are not the only things that impact car insurance rates: Of course, insurers also consider the driver(s), the way the car gets used, and the location where the car is typically driven.
  • Insurers are not all the same: Some auto insurance companies are friendlier to certain types of cars and certain types of drivers than others. It pays to shop around to ensure you get the best insurance rate, and you are free to get car insurance quotes before you purchase a new or used car.

Which Cars are Generally Cheapest to Insure in 2014?

Forbes Magazine published an article called Cheapest 2014 Cars to Insure in 2014, and the results might surprise you.  SUVs, crossovers, and minivans typically make the top 10 best insurance values, and this may be because these cars are made to haul kids around, so buyers care about safety more than other things.  This is partly because insurers like the safety record of these vehicles, but it is also because insurance company actuaries like the type of people who purchase these family vehicles.

These are some results of average annual costs to insure these cars with a driver representative of an average owner:

  • Jeep Wrangler average annual premium: $1,080
  • Patriot: $1,104
  • Compass: $1,140
  • Grand Cherokee: $1,171
  • Honda CRV: $1,115
  • Subaru Outback: $1,144
  • Dodge Journey: $1,149

The costs are just averages, and the quotes were obtained with some definition of an “average” driver.  The quotes are also national averages, and your state may be more expensive or cheaper. You might be interested in looking at some average car insurance costs by state to see how your area ranks.

Of course, you are free to obtain quotes for any make and model of car you might consider buying for yourself. Combinations of discounts and other positive factors, like a clean driving record, could make your own 2014 car insurance cheaper. Of course, a few dings on your record or living in a city with high average premiums could make your coverage more expensive too.

Which vehicle is most expensive to cover in 2014? According to Forbes:

Nissan GT-R sports coupe in its top Track Edition breaking the bank at an annual average $3,169.


Lower Car Insurance Rates for Teens and Seniors

How to Find Affordable Auto Policies for Young Drivers and Older Drivers

Reduce driving risks for teenagers and seniors

Reduce driving risks for teenagers and seniors

If you have some high school or college kids on your auto policy, you probably got a rate shock when you first needed to cover them after they earned a drivers license. On the other hand, if your elderly mom and dad still drives, they may have been shocked when an insurance company that they had relied upon for years suddenly handed them a sizable rate increase.

While middle aged people might enjoy the very best auto insurance rates, the very young and the very old might be considered high risk drivers. However, there are some good things that both teenagers and seniors can do to reduce policy prices.This article covers both younger and older drivers.

Why Are Average Rates for Teenagers and Elderly Drivers Higher?

Both tens and seniors are the highest risk rate classes for age. Insurers see that both groups are more likely to make claims that members of other age groups, so they charge more for coverage. While teens lack experience and possibly judgment, older people may not react quickly or still have acute senses. Additionally, frail elderly people are more likely to suffer from serious injuries in an accident than younger people. However, there are things that can be done to help reduce risks and earn discounts for both teenage and senior drivers.

Under 25 and Teenage Drivers

It’s almost a joke that young adults and teen drivers are likely to have accidents as they are gaining experience and maturing, but it might not be a joke if your son or daughter has a serious accidents. That is why it is important to do everything possible to turn them from teen drivers into safe drivers as quickly as possible.

Adults under 25 and teenagers tend to be considered high risk drivers for a few reasons:

  • Lack of experience and maturity
  • No driving history for a car insurance company to base decisions upon
  • Higher rates of distracted driving accident
  • Higher rates of claims than other age groups
  • Judged as impulsive or poor decision makers

How can you convince an insurance company that your son or daughter is not as risky as his or her age group? Really,  you can demonstrate that you have taken ever possible step to help them avoid an accident.

These steps may result in cheaper car insurance for young drivers with young driver discounts and/or help prevent accidents:

  • Accredited driver’s education schools offer training on the road and in a classroom.
  • Good students earn discounts with many insurers.
  • Typically, combining their coverage with your own may result in a family discounts.
  • Student drivers need to be made aware of the dangers of distracted driving and driving while drinking.
  • Students need to avoid tickets or accidents to keep rates lower and protect their own safety.
  • Consider getting your young driver one of the safer cars that are also cheaper to insure.
  • If your son or daughter only occasionally shares a car with you, see if you can get them named as an “occasional” driver.

Senior Drivers

Older drivers may have lots of experience on the road, and they generally tend to be cautious drivers. You might think they are exactly the opposite of teenagers and should earn good auto insurance rates. However, teens usually have good eyesight, vision, and reaction times. As people age, they may lose some vision, eyesight, and ability to react quickly to different situations on the road. There may even come a time when elderly people really should not drive any long.

However, these are things that can help senior drivers safer and possibly earn senior driver discounts:

  • Defensive driving classes: Some are specially tailored for elderly drivers or drivers with different physical conditions.
  • Consider safer cars: Many cars come with crash-detection systems and other features that help all people avoid accidents.
  • Consider road conditions: Some older people should only drive in the daytime and avoid poor weather conditions.
  • Avoid freeways and busy traffic: Additionally, many older people decide not to drive on freeways and confine themselves to quieter streets.

If elderly people need to reduce their driving or even eliminate it, it might help to find housing that is convenient to mass transportation or have other family members pitch in more to help with appointments and errands.





Average Car Insurance Rates: State by State

Who Cares About Average Car Insurance Rates, Anyway?

Average rates: State by State

Average rates: State by State

According to a recent survey conducted in 2014, the national average rate for full coverage car insurance is about $1,500. Why does anybody care if average car insurance rates in Michigan are the highest in the nation and Ohio comes in at #51? By the way, there are 51 entries because DC is included. Note that in this case, coming in last is a good thing for driver’s pocketbooks.  Auto insurance companies use a number of different factors to calculate any family’s actual premium. These include, of course, driving history, age, type of car, the way the car gets driven, and credit history.

However, if you have, for example, a very good driving history, you might wonder why you can’t find cheap Dallas car insurance while your buddy in Cleveland has had two wrecks in the last two years, and he still has cheaper rates than you do. This is really just more for information and to help consumers understand how laws and the local environment influence car insurance rates.

Average Car Insurance Rates in States: Highs and Lows

One thing that drives up prices in Michigan is the state law that requires generous PIP, or personal injury protection. PIP is no-fault coverage for bodily injuries, and it isn’t required by minimum liability insurance laws in every state, and it might not be as generous in some states where it is mandatory. For example, the Michigan plan allows lifetime limits, but New York caps benefits at $40,000.

The top most expensive average auto policy prices:

1 Michigan  $   2,551
2 West Virginia  $   2,518
3 Georgia  $   2,201
4 Washington, D.C.  $   2,127
5 Rhode Island  $   2,020
6 Montana  $   2,013
7 Louisiana  $   1,971
8 California  $   1,962
9 New Jersey  $   1,905
10 Florida  $   1,830

Other things that can drive up the price of auto insurance include the average cost of repairing cars, the rate of thefts, and the risk of claims. Even within a state, prices are usually higher in densely populated cities and metropolitan areas than they are in small towns and rural areas. It is likely that Detroit residents pay more than residents of small towns or out in the country.

That might make you wonder how W. Virginia made it to 2nd. It is a combination of natural factors, like the likelihood of hitting a deer or construction debris damaging windshields, and a high number of uninsured drivers. Bad weather is another factor, and the likelihood of disasters like hail or severe flooding that damage vehicles can drive up a state’s overall rates too.


By the way, these figures come from a study of average car insurance rates by state published by They commissioned Quadrant Information Service to survey the largest insurers to come up with the figures.  They used Allstate, Farmers, GEICO, Nationwide, Progressive and State Farm, and they only did the study in 10 ZIP codes for each state, so these figures are open to interpretation.


Lowest Average Car Insurance Rates by State

41 Utah  $   1,192
42 New York  $   1,173
43 Vermont  $   1,149
44 Virginia  $   1,114
45 Wisconin  $   1,087
46 North Carolina  $   1,060
47 Iowa  $   1,058
48 Idaho  $   1,053
49 New Hampshire  $      983
50 Maine  $      964
51 Ohio  $      926

Main has the luxury of being one state with a lot of sparsely populated areas that can be traveled without resorting to crowded freeways.Additionally, juries in Maine are not likely to award huge verdicts in personal injury cases involving cars. Finally, the crime rate in the state of Maine is low, and that means cars are not likely to be stolen or vandalized. Maine does get some winter storms, but they don’t tend to suffer a great number of calamities that damage cars in other states. Maine seems like a great place to live and drive!

Ohio does contain some large cities, but experts believe that the sheer number of different car insurance companies in the state help breed an atmosphere of competition that help keep prices low for consumers. Local insurance professionals also say that the way the state regulates companies and policies helps keep rates modest.



How Were Average Rates Calculated?

You already know that the premiums for any one person can vary a lot depending upon different factors.

For this study, rates are based upon buying full coverage for an unmarried male who is 40, commuted 12 miles a day, and has policy limits of 100/300/50. Note that these may not reflect mandatory liability insurance in each state. The policies had a $500 deductible for the collision and comprehensive part of the policy. This example driver also enjoys decent credit and a good driving record. Rates also include uninsured motorist.