Insurance Tips For Car Buyers: The Least and Most Expensive Cars to Insure

Lucy Lazarony
May 15, 2020

Buying a car is exciting. The new car smell euphoria is real. And nothing beats the feeling of landing a really good deal on a used car.

Car shopping on car-shopping websites is a snap. Plus, it is easy to check out a dealer’s online inventory without setting foot in the car dealership. So, you will be able to comparison shop with ease.

Of course, there is another important piece to the car buying experience that shouldn’t be overlooked and that’s buying car insurance for a new car.

New Car Insurance

Everything is new with a new car and so is the car insurance. If you already have a car or cars in your garage you have a little bit more time to buy your new car insurance and save some money.

Most insurance companies provide automatic coverage for new car purchases and that coverage is equal to the best coverage that you already have on your current car or any other cars that you have in your garage. This coverage lasts for four days. In short, if you already have a car insurance policy in effect and you buy a new car the policy for the new car will cover you for up to four days.

Let’s say you have a 2010 Honda Civic and you are trading it in for a brand-new 2020 Mazda6 sedan. If the Honda Civic is the only car listed on your policy, the Mazda6 will automatically have the same coverage as the Honda Civic for up to four days.

In that time, you’ll want to reach out to your car insurance company for a brand-new insurance policy for your new Mazda6. When getting insurance for a new car you’ll want to give the following information: the year, make and model of the car, the car’s VIN number plus contact information for your auto lender.

If you are buying your first car and you don’t have insurance on any other car you will need to get your insurance coverage well in advance of shopping for your first car.

Just how much is insurance for a new car? There are a number of factors at play. Your age, your gender, where you live, your credit score, your coverage choices and the type of car you drive and your driving record all contribute to the price of your auto insurance premium.

In addition, auto insurance premiums vary from company to company. So, for the same car five different insurance companies may offer you five very different policy prices.

And that it is why it is important to shop around for the best new car insurance quotes.

SmartFinancial makes it easy to compare free car insurance quotes instantly. Just input your zip code to get started. Next, answer a brief questionnaire letting SmartFinancial know the kind of auto insurance coverage that you want. Do you want relatively cheap car insurance or are you looking for more comprehensive coverage for your new car?

SmartFinancial will do a comparison of more than 200 car insurance companies. So review the offers and choose the best car insurance for you.

Here’s a good tip about choosing an auto insurance company. Don’t settle for the first insurance quote that you get. It is always best to compare several offers. So take your time and really review all the offers you have in front of you. It will be worth it to land the most affordable auto insurance for your needs.

Used Cars and Insurance

New cars are nice and shiny and, well, new. But if you prefer to shop used for your vehicle of choice, it is a smart financial choice. It all has to do with depreciation. New cars depreciate fast in their first year and it just keeps going. By buying a used car you let the previous owner take the big depreciation hit. And you sneak in and get a great, low price.

How much depreciation are we talking about? According to CarFax, the value of a new car can drop by more than 20 percent in the first year of ownership and over the next four years you can expect the price to drop 10 percent a year. That’s 60 percent in five years. That’s some price drop, and that’s why used cars are so attractive to cost-conscious shoppers.

The Internet makes it easy to shop for a used car. Dealer inventories and used car lots are all online. Begin by looking for a low mileage car that is just a few years old. Who knows what deals you can find on a three- or four-year-old car? Or you may be shopping for an even older car if your budget is tight. Since you are not the vehicle’s first driver, be sure to test drive a vehicle to see how it handles before buying it. Does the car still have some of its original warranty? Be sure to ask.

You may want to do a vehicle history report on the used car as well to see how many owners the car has had and if it has been in any accidents. The more research you do on a used car the better off you are as a shopper.

Don’t forget to compare auto insurance rates for the used car. You will need to get insurance coverage for your car and you will want to do your shopping in advance.

First-time Car Buyer

If you are a first-time car buyer it is an especially exciting time. That car will bring a whole new kind of freedom. But with that freedom comes responsibility and that’s where car insurance comes in. You’ll want to make sure that you, your passengers and your car are protected in case of an accident or mishap or other reported loss. And that’s why car insurance for first time buyers is so important.

Are you a high school or college student? You may be able to get a good student discount. A good student discount usually means maintaining a “B” average or better and it applies to students under the age of 25.

Being a safe and good driver means no speeding tickets, no at-fault accidents and no DUIs. It will earn you a discount as well. Every little bit adds up when you are pricing an auto insurance premium. And young drivers will need those discounts since their lack of driving history will be counted against them when pricing an auto insurance policy. Young drivers, those under 25, file more accident claims and are charged higher auto rates than people over 25 so they are charged more. Credit scores factor into auto insurance premiums and many young people are new to credit or they may even have bad credit, and both things get factored into a credit-based insurance score that insurance companies use when pricing auto premiums.

What’s the cheapest insurance for first-time car buyers? You’ll get that by comparison shopping car insurance with SmartFinancial. They make it easy to compare free car insurance quotes by doing a comparison of more than 200 car insurance companies.

So, take some time to review the offers and choose the best car insurance for you. Look at several offers carefully before choosing. Make sure you’re comparing comparable coverage.

New Car Replacement Insurance

Choosing new car replacement insurance on a brand-new car is a smart way to add an auto insurance policy. This additional coverage eases the burden of replacing a new car that has been badly damaged in an accident.

New car replacement insurance gives an additional, much needed pay out to the driver and eases the financial burden of replacing a brand-new car that has been totaled.

With new car replacement insurance, your insurance company will give you money for a brand-new car of the same make and model of your totaled vehicle.

This reimbursement doesn’t include your vehicle’s deductible. A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. So you will still need to pay whatever deductible you have on the car following the incident that totaled your vehicle.

New car replacement insurance is a good option to consider on a new car, the extra protection can make a big difference should there be a major accident but it is usually only available on cars that are two years or newer. And not all insurance companies offer new car replacement insurance coverage so you may need to shop around to find coverage.

Cheapest new cars to insure

Overall, cars are getting more expensive thanks to new safety features and other technological advances. But you can still find some new cars that are cheap to insure. What do these cars have in common? These cheap-to-insure cars are more affordably priced and they are relatively cheap to repair.

And there will always be more expensive cars to insure. These cars come with big price tags and cost a fortune to repair. A hefty insurance bill is just one more thing that makes these cars expensive to own.

Forbes gathered a list of the least expensive cars and most expensive cars to insure for 2020.

Here are the vehicles that made each list in order.

Least Expensive Vehicles to Insure for 2020

1) Mazda CX-3 Sport
2) Honda CR-V LX
3) Jeep Wrangler Sport S
4) Subaru Outback 2.5i
5) Fiat 500X Pop
6) Honda Odyssey LX
7) Subaru Forester 2.5i
8) Mazda CX-5
9) Jeep Renegade Sport
10) Honda HR-V LX
11) Honda Fit LX Sensing
12) Jeep Compass Sport
13) Subaru Crosstrek
14) Ford Escape S
15) Chrysler Pacifica Touring
16) Buick Encore Preferred
17) Hyundai Tucson SE
18) GMC Canyon
19) GMC Savana Van G2500 LS
20) Chevrolet Express Van G2500 LS
21) Honda Pilot LX
22) Dodge Grand Caravan SE

Most Expensive Vehicles to Insure for 2020

1) Mercedes AMG GT R
2) Audi R8 5.2L V10 Quattro Performance
3) Nissan GT-R
4) BMW M8 Competition XDrive Convertible
5) Mercedes AMG S65
6) BMW M760i xDrive
7) Porsche Panamera GTS Turbo
8) Tesla Model X Performance
9) Dodge Challenger SRT Hellcat Redeye
10) Mercedes S560 Convertible
11) BMW I8
12) Porsche 911 Carrera GT3 RS
13) BMW 840i Convertible
14) Audi S8 L Quattro
15) Mercedes S63 AMG 4Matic
16) Tesla Model S Performance
17) Mercedes Maybach S650
18) BMW 750i XDrive
19) Jaguar F-Type SVR
20) Jaguar XF Sportbrake Prestige

Did your favorite make the list of least expensive cars to insure? What about the most expensive? Did you learn which are the most expensive sports cars?

Whether you choose a sports car or economy sedan for your next purchase, choose your auto insurance company by shopping around and comparing premiums. When you find the premium that gives the coverage you want at the best price, you are ready to buy. Just gather together the year, make and model of the car, the car’s VIN number plus contact information for your auto lender. Give this information to your new car insurance company and you’ll be ready to drive your new, insured car in no time.

One last tip for saving money on your auto premium, skip the monthly payments and pay six months or a year instead. Paying big will lower your premium. And if you’ve got the cash to do so it makes sense to pay more and enjoy the premium savings.

Get a Free Auto Insurance Quote Online Now.

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