AUTO INSURANCE ARTICLE
A Smaller Car Doesn't Always Equate To Getting Cheap Auto Insurance
By: AutoInsuranceGuyWe all like the thought of saving gas especially when fuel prices started to soar. Thus, many people have opted to buy smaller cars or hybrid cars that are gas-efficient. These people may have saved on gas money but the auto insurance industry is taking these savings from consumers. Yes, we save money on gas but it may difficult to obtain cheap auto insurance.
The nature of smaller cars actually makes them justifiably more expensive to insure. Smaller vehicles and even some of the hybrid models’ replacement parts can be a bit difficult to obtain and labor costs are usually higher than for conventional cars. Hybrid cars also usually take longer to repair. Studies have also shown that hybrid cars and SUVs have statistically higher repair costs than their gas-only counterparts. It should then be normal for us to expect that insurance companies would charge a higher premium for these reasons.
On the other hand, owner of smaller cars may have lower liability premiums for property damage. Liability insurance covers the costs of another person’s car or property and because a small vehicle is not likely to create a major damage, insurance companies may give you a discount for this. While people who own small or hybrid cars are spending money to have their autos fixed, they are saving dollars from liability premiums. This is because smaller cars tend to do less damage to the things they hit when compared to larger vehicles in similar collisions.
However, there is another concern about the nature of small cars as it may offer the drivers and passengers a reduced level of protection from crashes and collisions. This is definitely a huge consideration for insurance companies so make sure you have installed a number of safety devices on your small / hybrid car to perhaps compensate for this. It also goes the same for kit cars—they rarely qualify for affordable auto insurance. With the engine, frame, gearbox and parts usually assembled by the owner they rarely pass safety checks and usually lack most of the popular modern safety features including airbags and high-impact crumple zones.
If you want to keep your small auto, then how do you lower auto insurance premiums? Well, it’s almost inevitable that you will be paying a little bit more than most conventional car drivers but there are still some factors that you can control to reduce your costs. One that I have mentioned already is to install as much safety devices on your car. You can also declare just one named driver on the policy—this will definitely reduce the cost. Finally, always shop around and look for the best deal. Never be contented with just one auto insurance quote. Make sure you always have something to compare with as it is always worth it to know what’s in the market.
The bottom line is to list down all the pros and cons of having a smaller car then weigh all your options to see which one saves you more money.